CNI Research Limited releases a study on “Rise in FII stake in Q2 and its impact on prices”

by | Nov 4, 2009 | Press Releases

Press Release
November 04,
2009

Scrip ID: CNIRESLTD
Scrip Code: 512018

CNI Research Limited releases a study on "Rise in FII stake in Q2 and its impact on prices"

CNI research Ltd., the leading BSE listed research organization that specializes in Small & Mid-caps, today released a study on “The Rise in FII stake in Q2 and its impact on prices”.

CNI Research has tabulated the companies in which FIIs have raised stake in Q2. The data of 208 companies is covered in this study.

CNI Research has found that in 93% cases there was a price rise when the FII stake rose by 2% in one quarter. Where the stake rose by 5%, the rise was in over 80% cases, for 10% stake rise cases the price rise was in 86% companies and where the stake increased over 10% the price rise was seen in 100% cases.

However it does not mean that all the 189 companies which witnessed a price rise offer an opportunity for investors to invest, as the price rise is very erratic and in some cases it is even above 50%.

CNI Research has looked closely at these 189 companies and found out that there are companies where FII have just started raising the stake and the price rise is below 10%, which in other terms can be called under performers and can still offer investors an opportunity to invest.

The analysis of the data available shows that there are 27 companies where the FII holding has just started to rise and price rise is still below 10%, which is even below the Sensex rise.

CNI Research believes that these 27 companies offer the best opportunity of buying from the perspective of investors. These are Crompton Greaves, Savita Oil Tech, Merck, Reliance Natural Res, Praj Industries, GTL Infrastructure, Country Club, Coromandel Internatal, Titan Inds, Alstom Project, Usha Martin Infotech, Manglore Refinery, Karnataka Bank, ICI India, Tata TeleServices, Balmer Lawrie, GTL, ICRA, Future Capital, Gammon Infra Project, Four Soft, EIH, Reliance Inds, Tata Communication, JSL, Neyveli Lignite, Visaka Inds and Blue Star.

It is generally believed that investors should identify companies where FII‘s have started consolidating their stake. In this category CNI Research has seen that FII holding has just started rising as the rise is not even 1% and price rise is also just