Institutional holding rises in IT majors

With the IT services sector reviving after the slowdown, institutional investors have shown a strong inclination for top-tier tech companies including TCS, Infosys, Wipro and HCL Tech.

Over the past year, institutional holding both foreign and domestic – in the companies has grown between 1 and 2.5 percentage points. Simultaneously promoter holding has declined marginally for the top two IT vendors – TCS and Infosys.

TCS, the largest IT services company in the country posted excellent results to the delight of the market earlier this month with 50 per cent net profit rise for March quarter. The company saw the overall institutional holding rise by 2.43 percentage points to 20.28 per cent.

The story was same with HCL which witnessed a 2.49 percentage point increase. Infosys and Wipro registered 1.68 and 1.02 percentage points increase in institutional holding respectively.

The institutional buying was led by foreign institutional investors (FIIs) buying while domestic institutions appeared to be less active during the period.

HCL Tech registered the steepest rise in FII holding at 3 percentage points followed by TCS at 2.43 percentage points. Infosys at 1.5 percentage points and Wipro at 1.32 percentage points followed the leaders.

Meanwhile, the holding of domestic institutions slipped marginally for Wipro and HCL Tech even as it rose marginally for Infosys. The domestic institutional holding did not change for TCS.