FIIs trim stake in FMCG companies during Jan-Mar quarter

Tags: Companies
Foreign Institutional Investors (FIIs) have reduced their exposure in fast-moving consumer goods (FMCG) companies such as Colgate, Dabur and Emami during the January-March period of FY'14 as compared to the preceding quarter.

On the other hand, domestic institutional investors (DIIs) were mostly buyers in the consumer sector.

Of the 16 FMCG firms that were analysed, 11 companies saw a decline in their respective overseas investors' holding in the three months ended March 30 over the preceding quarter, while four witnessed an increase in FIIs stake, according to a report by A C Choksi Share Brokers.

Besides, FIIs stake in ITC remains unchanged in January-March quarter from the preceding three months.

Giving reasons for avoidance of FMCG stocks by FIIs, market experts said these counters have become very expensive in terms of valuation.

Apart from Colgate, Dabur and Emami, FIIs initiated fresh sell positions in Godrej Consumer Products Ltd (GCPL), Asian Paints, Berger Paints, United Spirits, Zydus Wellness, Marico, Hindustan Unilever Ltd (HUL) and GSK Consumer Healthcare during the quarter under review, the report said.

In contrast, FIIs have offloaded shares of Bajaj Corp, Nestle, Jyothy Laboratories and Britannia.

"...DIIs are selectively bullish on consumer stocks while FIIs are reducing their holding in the sector. However, as FIIs remained consistent in increasing their holding in Britannia and Nestle, we deduce that they are bullish on processed food consumption story," the report added.

EDITORIAL OF THE DAY

  • Annual reports make sense only if accountable governance is in place

    It’s a sign of a lack of imagination to expect an annual report by a party in power to pull out some impressive performance given the complex nature

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Amita Sharma

Political rhetoric makes for counter poetry

Poetic flourishes flavour politics. Ghalib and Hafez flowed profusely to ...

Zehra Naqvi

Watch your words, for they can kill

You must’ve heard the ph­rase ‘if looks could kill’. Ever ...

Dharmendra Khandal

Biodiversity day has come and gone. Yet again

Every year on May 22, world celebrates international biodiversity day. ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture