FIIs make sales of $1.13bn sales in May — their biggest ever
Mumbai: Foreign funds have made their biggest sales in a month, becoming net sellers for $1.13bn (Rs5,041.03 crore) in May, ever since the Indian stock markets opened up to overseas portfolio investors in the early 1990s.

According to the Securities and Exchange Board of India and NSE data, FIIs have offloaded more than $1.32 billion, almost Rs6,000 crore, worth of equity after the market peaked on May 11. The previous high for single month sales by foreign funds was in October last year at $840.90 million (Rs 3,693.90 crore). According to analysts, the FIIs are unwinding their positions in the derivatives markets as well, despite huge opportunities for arbitrage.

In the index futures alone, FIIs have reduced positions worth Rs2,738.70 crore since last Thursday, indicating an expectation that markets will correct further in the short-term.
Back to News Review index page  

As FIIs download, MFs up their stake
Chennai: Between June 30, 2005 and March 31, 2006, market capitalisation of BSE-30 stocks rose from Rs9,33,303 crore to Rs14,27,271 crore, that is by about Rs5 lakh crore..

Over this period, the value of holdings by foreign institutional investors (FIIs) in the Sensex constituents went up by Rs1,05,337crore, to Rs2,81,333 crore, a 60 per cent jump. However, FII holdings, as a percentage of total market cap of Sensex, have risen only marginally, up at 19.7 per cent from 18.9 per cent.

The period July 2005- March 2006 saw the mutual funds (MFs) increase the value of their holdings in the Sensex constituents by more than 100 per cent to Rs34,099 crore on March 31, from Rs16,721 crore on June 30, 2005. As a percentage of the total market cap of Sensex, the MFs have increased their percentage from a measly 1.8 per cent to 2.4 per cent.
Back to News Review index page  

ABN Amro enters retail broking
Mumbai: Dutch banking major, ABN Amro has launched its retail broking services in India. The bank has said that it plans to enter commodity futures trading at a later date.

The broking service will be available in all markets in the country where ABN Amro is present and at key stock trading centres, the bank said. ABN Amro Broking will offer customers the convenience of a one-stop broking service from research-based advice to execution of transactions across multiple product offerings and multiple delivery channels.

ABN Amro Broking was launched under the aegis of ABN Amro Asia Equities (India), which currently does broking for institutional investors. The India research team of ABN Amro Asia Equities covers over 80 companies, comprising more than 75 per cent of the BSE market capitalisation.

The technology platform for ABN Amro Broking has been developed by TCS. It is designed as an integrated front office, risk management, back office, accounts and billing system. Apart from offering Internet trading facility with online trade confirmations, mobile trading facility with SMS alerts, direct connectivity with the BSE, NSE and interface with their settlement systems, the platform also provides interfaces with the bank operating platforms to bring to clients a seamless trading experience.
Back to News Review index page  

Prime Focus fixes IPO price band at Rs450-500
Mumbai: Prime Focus Ltd, a post-production and visual effects service house, plans to enter the capital market with an initial public issue of Rs115 crore, through the book building process. The issue opens on May 25 and closes on May 31.

The price band has been fixed at Rs450 to Rs500 per equity share of Rs10 each. The capital raised would be used to finance the company's expansion plans in India and overseas. Prime Focus intends to set up digital studios at Hyderabad, Los Angeles, London and Dubai, company officials said. The post-production industry, currently estimated at Rs500 crore, is expected to grow to Rs1,000 crore by 2007.

Prime Focus had recently acquired 55 per cent stake in the UK-based media service company VTR Group. It expects to acquire other media service companies to have an integration between the Indian and overseas studios, officials said. Adlabs Films, a strategic investor in Prime Focus, has 4.66 per cent of the existing capital and Reliance Capital has 14.53 per cent stake. Rakesh Jhunjhunwala and Rekha Jhunjhunwala hold 8.5 per cent and promoters and friends the rest. The company recorded revenue of Rs 33.57 crore for the first nine months ended December 31, 2005.

ICICI Securities Ltd and Centrum Capital Ltd are the book running lead managers of the issue and Intime Spectrum Registry Ltd is the registrar.
Back to News Review index page  

Gulf Oil Board recommends dividend
Mumbai: Gulf Oil Corporation Ltd has informed BSE that the Board of Directors of the Company at its meeting held on May 24, 2006, inter alia, has recommended a dividend of Rs 7/- (70%) per share for the year 2005-06.
Back to News Review index page