Banks,capital goods top Foreign Institutional Investor list
Axis Bank and ICICI bank saw the highest increase in foreign ownership
By : DC Correspondent
Update: 2014-04-19 05:22 GMT
Mumbai: Betting big on a major improvement in the domestic economic growth once a new government takes charge after the Lok Sabha polls, FIIs have significantly increased their exposure to banking and capital goods sector during the first quarter of this calendar year. Among the Sensex constituents, private sector lender Axis Bank saw the highest increase in foreign ownership, which has climbed from 43.18 per cent to 48.74 per cent.
India’s largest private sector lender ICICI Bank saw its foreign ownership hitting a six year high of 39.87 per cent during the January March quarter from 38.41 per cent reported during quarter ended December 2013.Even state owned banks have seen an increase in foreign ownership as a pick up in domestic growth would help these banks to bring down their non performing loans, which had seen a sharp increase during the previous few quarters.
Subdued demand and weak economic growth had led to large number of small and mid sized firms defaulting on their loan repayment.
“They are betting big on the future growth story as they feel that a stable and decisive government at the centre post the Lok Sabha polls would help India to revive its subdued economic growth,” said Gopal Agrawal, head of equity at Mirae Asset Global, which focuses on emerging market economies. Staterun BHEL and L&T from the capital goods sector also saw a major increase in foreign ownership. While FII shareholding in BHEL increased to 16.14 per cent from 15.63 per cent L&T saw its FII stake increase to 18.47 per cent from 17.85 per cent.