Dear All,
Aug. 23 (Bloomberg) -- Founders of Indian companies have
been raising holdings at the fastest pace in more than two years,
while foreign funds were cutting stakes amid a slump that pushed
down valuations to the lowest since 2009 two-year low.
The CHART OF THE DAY shows the main shareholders' ownership
in the 50 companies of the S&P CNX Nifty Index climbed to
average 48.46 percent in the three months ended June 30, up 1
percentage point from the quarter ended March. The increase is
the biggest since such owners boosted holdings to 49.54 percent
after the index's record slump in 2008. The chart also shows
overseas investors reduced their stakes by 1.5 percentage point
to 19 percent in the June quarter.
"Founders are seeing an opportunity to buy shares at a
discount to their view on long-term fundamentals," Seth R.
Freeman, chief executive officer at EM Capital Management LLC in
San Francisco, said in an e-mail. "It's always a good sign when
founder-managers wish to increase their holdings. It
demonstrates a belief the shares are a better opportunity than
other uses of cash."
Billionaire Anil Ambani raised his stake in Reliance
Infrastructure Ltd., the builder of a mass rapid transit system,
to 48.09 as of June 30, from 42.91 percent on Dec. 31, according
to the company's website. The founders of Ambuja Cements Ltd.
increased their holdings to 50.39 percent of the nation's
second-biggest maker of the construction material by market
value, from 46.24 percent at the end of last year, the data show.
Both companies are members of the Nifty index.
The Bombay Stock Exchange Sensitive Index fell 8.1 percent
in the first two quarters of this year, its first drop over a
six-month period since the end of 2008, as India's central bank
carried out the most aggressive interest-rate increases among
major Asian economies. The gauge has fallen a further 13.3
percent since July 1. Sensex companies trade at 13.6 times
estimated earnings, down from 21.5 times last March. The MSCI
Emerging Markets Index is valued at a 9.6 multiple.
India's market regulator last month eased takeover rules,
seeking to lure investors after mergers and acquisitions in the
South Asian nation slumped. The new rules, which are yet to take
effect, will allow investors to raise their holdings in
companies to as much as 25 percent without having to offer to
buy additional shares from the public, up from a 15 percent
trigger-point.
been raising holdings at the fastest pace in more than two years,
while foreign funds were cutting stakes amid a slump that pushed
down valuations to the lowest since 2009 two-year low.
The CHART OF THE DAY shows the main shareholders' ownership
in the 50 companies of the S&P CNX Nifty Index climbed to
average 48.46 percent in the three months ended June 30, up 1
percentage point from the quarter ended March. The increase is
the biggest since such owners boosted holdings to 49.54 percent
after the index's record slump in 2008. The chart also shows
overseas investors reduced their stakes by 1.5 percentage point
to 19 percent in the June quarter.
"Founders are seeing an opportunity to buy shares at a
discount to their view on long-term fundamentals," Seth R.
Freeman, chief executive officer at EM Capital Management LLC in
San Francisco, said in an e-mail. "It's always a good sign when
founder-managers wish to increase their holdings. It
demonstrates a belief the shares are a better opportunity than
other uses of cash."
Billionaire Anil Ambani raised his stake in Reliance
Infrastructure Ltd., the builder of a mass rapid transit system,
to 48.09 as of June 30, from 42.91 percent on Dec. 31, according
to the company's website. The founders of Ambuja Cements Ltd.
increased their holdings to 50.39 percent of the nation's
second-biggest maker of the construction material by market
value, from 46.24 percent at the end of last year, the data show.
Both companies are members of the Nifty index.
The Bombay Stock Exchange Sensitive Index fell 8.1 percent
in the first two quarters of this year, its first drop over a
six-month period since the end of 2008, as India's central bank
carried out the most aggressive interest-rate increases among
major Asian economies. The gauge has fallen a further 13.3
percent since July 1. Sensex companies trade at 13.6 times
estimated earnings, down from 21.5 times last March. The MSCI
Emerging Markets Index is valued at a 9.6 multiple.
India's market regulator last month eased takeover rules,
seeking to lure investors after mergers and acquisitions in the
South Asian nation slumped. The new rules, which are yet to take
effect, will allow investors to raise their holdings in
companies to as much as 25 percent without having to offer to
buy additional shares from the public, up from a 15 percent
trigger-point.
Note:- (Big players use this opportunity so why not you)
Source:- SeniorOne
Source:- SeniorOne
Thanks & Regards
R. Saxena
Phone No: 09899365905
Mail Id: simmi9sep@gmail.com
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