FIIs eye gems & jewellery firms for major investments, says ASSOCHAM

11 Aug '05

3 min read

The foreign institutional investors (FIIs) which have increased their exposure to the Indian stock market and taken the benchmark Bombay Sensex close to the never-before-level of 8000 mark, have their favourites in the gems & jewellery firms, followed by the media and telecom sectors.

Strong economic growth; industrial pick-up; focus on core sectors like infrastructure, power and telecom; and the good performance of the corporates have led the FIIs to continue to be bullish in the Indian market. “With the Indian economy expected to grow by 7 per cent in FY'06, it is likely that the FII investments is here for a long run”, ASSOCHAM President, Mr. Mahendra K. Sanghi said.

According to an ASSOCHAM, Eco Pulse (AEP) study, the average FII exposure in the top 10 G&J firms increased by 13.41 per cent by June-end, 2005 as compared to December-end, 2004. The largest increase has been in SB&T International which recorded a growth of 26.61 per cent followed by Rajesh Exports (9.04 per cent) and Shrenuj & Co. (0.2 per cent).

The average increase in the FII exposure amongst the top 10 media firms was at 6.68 per cent in the first six months of this calendar year 2005. Tips Industries and Balaji Telefilms posted a significant increase in the foreign stake by massive 7.91 per cent and 5.45 per cent respectively.

The top 10 telcos witnessed an average increase of 5.35 per cent in FII stakes with Bharti reporting the largest FII stake increase by 9.82 per cent in June, 2005 from December, 2004. There was a 5 per cent increase in the FII stake in Videsh Sanchar Nigam Limited. The increase in MTNL and Tata Tele Services was to the extent of mere 0.48 per cent and 0.88 per cent respectively.

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