This was 558 basis points lower than the 17.37 per cent stake the institutional category held in the company at the end of 2014. DII holding in the company fell to 25.94 per cent during the second quarter from 28.75 per cent in the first quarter.
JSPL, another steelmaker, saw FIIs slash their stakes in the company by 259 basis points to 16.6 per cent in Q2 from 19.9 per cent in Q1. FII stake in the company had stood at 21.38 per cent in the September quarter of last year. DII holding in the stock has fallen to 2.93 per cent from 21.38 per cent on a YoY basis, even as there was some marginal uptick (21 basis points) on a quarter-on-quarter basis.
Other steelmakers such as SAILBSE 2.31 %, JSW SteelBSE 1.87 % and Bhushan SteelBSE 1.34 % are yet to come out with their shareholding data.
Commodity prices across the board were lower in September, which continued to put pressure on the earnings of metal and mining companies, brokerage Motilal Oswal Financial ServicesBSE 1.76 % said, adding that it expects its coverage universe to report 47 per cent YoY decline in Ebitda in Q2FY16.
At present, FII holding in BSE200 companies stands at 24.9 per cent. FII stake accounts for 49.5 per cent of BSE200 companies' free float shares. Data available with NSDL showed FPIs' total exposure to the metals and mining sector (excluding coal) stood at Rs 21,801 crore as of September 15, compared with Rs 31,951 crore as of June 30.
"The Indian steel sector would remain under pressure due to high imports and lower steel prices. The recent imposition of 20 per cent safeguard duty has come as limited relief. Imports are still finding their way either as downstream products or disguised as higher grade products (on which the safeguard duty is not applicable). Steel companies have raised prices by Rs 500-700 per tonne in October, drawing support from the safeguard duty," said Motilal Oswal's report.
Source: http://economictimes.indiatimes.com/