>SHAREHOLDING MONITOR

Promoters, public, FIIs and MFs are the major equity stakeholders in a listed corporate entity. Of the stakeholders, FIIs have been major investors in Indian corporates as is evident from the accompanying chart (Exhibit 1) with their holding in BSE 500 companies moving up from 11% in December 2009 to 12.2% in December 2011. The optimism displayed by FIIs in the Indian corporate growth story arises from the fact that the Indian economy remained relatively insulated from the global economic meltdown mostly on account of the strong domestic consumption, thrust on infrastructure development and a strong banking system. The resilience of the Indian economy reaffirmed the faith of FII investors who have increased their holding in Indian companies. After pulling out | 53,052 crore in CY08 during the global economic meltdown, FIIs have invested | 85,368 crore in CY09 and | 1,34,294 crore in CY10. In CY11, FII investments in equity have been volatile with a cumulative net outflow of | 3358 crore. Q1CY11 was characterised by a pre-Budget selloff with FIIs being net sellers to the tune of | 3100 crore while Q2CY11 had seen positive inflows to the tune of | 5171 crore and Q3CY11 has seen an outflow of | 2961 crore. Lastly, Q4CY11 has registered a net outflow of | 2450 crore. FII holding has declined by 4.1% in Q4CY11 with the BSE 500 index correcting by 9.5% to 5779 level in December 2011 from 6386 levels in September 2011.

To read full report: SHAREHOLDING PATTERN
RISH TRADER