A Study of Impact of Foreign Institutional Investors on Midcap & Smallcap Market

8/2/2019 A Study of Impact of Foreign Institutional Investors on Midcap & Smallcap Market

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A STUDY OF IMPACT OF FOREIGN INSTITUTIONAL INVESTORS

ON MIDCAP & SMALLCAP MARKET

A DISSERTION SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQUIREMENT FOR THE DEGREE OF MASTER OF BUSINESS

ADMINISTRATION

SUBMITTED TO: SUBMITTED BY:MRS. PRERNA SHRIVASTAVA GOPAL AGARWAL(Lecturer) Enrollment No.: DX/07/16920

MEDICAPS INSTITUTE OF TECHNOLOGY & MANAGEMENT INDORE


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CERTIFICATE

This is to certify that Mr. Gopal Agarwal a student ofMaster of Business Administration, MedicapsInstitute of Technology & Management, Indore, has successfully completed his project under mysupervision.

During this period he worked on the project titled A STUDY OF IMPACT OF FOREIGNINSTITUTIONAL INVESTORS ON MIDCAP & SMALLCAP MARKET in fulfillment for the awardof degree of Master of Business Administration of Devi Ahilya Vishwavidhyalaya, Indore.His performanceand conduct has been good.

HEAD OF DEPARTMENT PROJECT GUIDE

(Dr. Hemant Indurkar) (Mrs. Prerna Shrivastava)Director Lecturer

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ACKNOWLEDGEMENT

I want to express my sincere gratitude to all those who made this study possible. First of all I am thankful tothe helpful staff and the faculty of Medicaps Institute of Technology & Management. One of the mostimportant tasks in every good study is its critical evaluation and feedback which was provided to me by myguide Mrs. Prerna Shrivastava.I am also thankful to Mr. Vardhan Choubey for investing his precioustime to discuss and criticize this study in depth and explained the meaning of different concepts and how tothink when it comes to problem discussions and theoretical discussions.

I am also thankful to Mr. Akhilesh Rathi owner of SNR Securities & Finance A Franchisee of AngelBroking Ltd. for his support and guidance for the project.

(Gopal Agarwal)

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CONTENT

Abstract

I Introduction........................................................................................................... 6II Rationale of Study. 7III Objective............................................................................................................... 8IV Research Methodology ........................................................................................ 9V Foreign Institutional Investors.. 10

V.i FII registered in IndiaV.ii Why FII Invest in India

VI BSE Mid-Cap and BSE Small-Cap Index. 12VII Foreign Institutional Investment: A Cost - Benefit Analysis. 13VIII Analysis. 14IX Results... 17X Conclusion. 18

AppendixHistorical DatasheetMidcap & Smallcap Indices Vs SensexFII Investment Vs Midcap & Smallcap Indices

Volatility AnalysisScripwise Impact of FII Shareholding on Price Movement of Midcap CompaniesScripwiseImpact of FII Shareholding on Price Movement of Smallcap Companies

References

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ABSTRACT

Foreign Institutional Investors have gained a significant role in Indian capital market. This project analysesthe impact of foreign institutional investment particularly among Midcap & Smallcap market of BombayStock Exchange. Analyzing the relationship between foreign institutional investment and movement ofindices and movement of prices of ten scrip each of Midcap and Smallcap Indices.

It is observed that there is a high degree of correlation between Midcap & Smallcap Indices and Sensex andalso FII gross purchases show high degree of correlation with Midcap and Smallcap Indices.FIIs are alsoresponsible for volatility in the stock market.

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INTRODUCTION

The increasing role of institutional investors has brought both quantitative and qualitative developments inthe stock market viz.; expansion of securities business; increased depth and breadth of the market, and aboveall their dominant investment philosophy of emphasizing the fundamentals have rendered efficient pricing ofthe stocks. The FIIs are major institutional investors in Indian capital market. Movement in the sensex hasclearly been driven by the behavior of Foreign Institutional Investors. The presence of Foreign InstitutionalInvestors in the BSE Midcap & Smallcap companies and their active trading behaviours, their role indetermining the share price movements must be considerable. Indian stock markets are known to be knownnarrow and shallow in the sense that there are few companies whose shares are actively traded. Althoughthere are more than 8000 companies listed with stock exchange, the BSE Midcap & Smallcap Indexincorporates only 685 companies. This shallowness also means that the FIIs can also affect the behavior ofother retail investors, who tend to follow the FIIs when making their investment decision.

Theoretically, FII investments bring in global liquidity into the equity markets and raise the price-earningratio and thereby reduce the cost of capital domestically. Lower cost of funds on account of low interestrates will aid the economic recovery and support valuations; Net FII inflows into India increased steadilysince the mid 1990s and reached Rs. 32000 crore in 2009. Along with this surge in FII inflows there hasalso been a boom in the Indian capital market as indicated by the stock market indices and marketcapitalisation. The surge in capital inflows could be viewed as an outcome of a combination of push andpull factors, of which stagnant returns from the previous investment destinations and the present rate ofgrowth of Indian economy seems to play an important role. Apart from other macro economic consequences,investors are directly affected by this increase in FII flows as it enhances or diminishes the security pricesand returns in Indian capital market.

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RATIONALE OF STUDY

Foreign Institutional Investors are said to be the drivers of the market. They are the cause behind the rise andfall of Sensex. FII investment trends tell us about many effects that the Indian market is experiencing. Thecompanies in which they invest are getting overvalued. Whenever FII find any trouble they withdraw theirinvestments.

There is a lot of discussion in the market about Sensex of BSE but many of us do not talkabout other Indices like BSE Midcap and Smallcap which are high growth oriented and risky investmentavenues.The return provided by them is high as compared to Sensex scrips. FIIs are also interested ininvestment in these scrips and impact these indices. So inorder to find the impact of FII on these market Ihad taken this study.

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OBJECTIVE

The objective of this study is to:

Find the relation of Midcap & Smallcap Indices with the Sensex.

Find the relationship between the Midcap & Smallcap Indices variations with the variation ofinvestments made by the Foreign Institutional Investors.

Find the impact of activities of Foreign Institutional Investors on the volatility of Midcap &Smallcap market.

To analyze the impact of FII shareholding on Price movement of Midcap & Smallcap companies.

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RESEARCH METHODOLOGY

Research refers to search for knowledge. One can define research as a scientific & systematic search

for pertinent information on a specific topic. Research is an original contribution to existing stock ofknowledge making for its advancement. It is the pursuit of truth with the help of observations.

Type of Research:

The Research which will be carried out by me is descriptive & analytical Research. The Research ison A Study of Impact of Foreign Institutional Investors on Midcap & Smallcap Markets .I amfocusing my research on Midcap & Smallcap market of Bombay Stock Exchange.In this research I haveused FIIs gross purchases data to find the relation with Midcap & Smallcap Indices. I have used both FIIsgross purchases & sales data to analyse the volatility. I have taken closing prices of Midcap & Smallcapcompanies & closing value of both Indices.

Data Collection:

Secondary sources have been used for the collection of the data used in the research.

Collecting data from Internet.

Collecting data from BSE, SEBI websites etc.

Collecting Information from books.

Collecting data from Magazines.

Sample Size:Four year data was collected as:

Monthly data from BSE of Midcap & Smallcap Indices (2005-2009)

Monthly data of FII flow in equity (2005-2009)

Quarterly FIIs shareholding data of ten companies each of Midcap & Smallcap Indices (2005-2009)

Quarterly closing price data of ten companies each of Midcap & Smallcap Indices (2005-2009)

Tools for Analysis:

Various Graphs/Charts etc.

Correlation Analysis

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FOREIGN INSTITUTIONAL INVESTOR

Foreign Institutional Investor (FII) is used to denote an investor - mostly of the form of an

institutionor entity, which invests money in the financial markets of a country different from the one wherein the institution or entity was originally incorporated.

FII investment is frequently referred to as hot money for the reason that it can leave the country at the

same speed at which it comes in.

The Union Government allowed the entry of FIIs in order to encourage the capital market and attract foreignfunds to India. Today, FIIs are permitted to invest in all securities traded on the primary and secondarymarkets, including equity shares and other securities listed or to be listed on the stock exchanges. Theoriginal guidelines were issued in September 1992. Subsequently, the Securities and Exchange Board ofIndia (SEBI) notified the SEBI (Foreign Institutional Investors) Regulations, 1995 in November 1995.

Over the years, different types of FIIs have been allowed to operate in Indian stock markets. They now in-clude institutions such as pension funds, mutual funds, investment trusts, asset management companies,nominee companies, incorporated/institutional portfolio managers, university funds, endowments, founda-tions and charitable trusts/societies with a track record. Proprietary funds have also been permitted to makeinvestments through the FII route subject to certain conditions.

FIIs can invest in all securities traded on the primary and secondary markets. Such investments include equi-ty/debentures/warrants/other securities/instruments of companies unlisted, listed or to be listed on a stockexchange in India including the Over-the-Counter Exchange of India, derivatives traded on a recognized

stock exchange and schemes floated by domestic mutual funds. A major feature of the guidelines is thatthere are no restrictions on the volume of investment - minimum or maximum - for the purpose of entry ofFIIs. There is also no lock-in period prescribed for the purpose of such investments. Further, FIIs can repatri-ate capital gains, dividends, incomes received by way of interest and any compensation received towardssale/renouncement of rights offering of shares subject to payment of withholding tax at source. The net pro-ceeds can be remitted at market rates of exchange.

FII REGISTERED IN INDIA:

The SEBI is the nodal agency for dealing with FIIs, and they have to obtain initial registration withSEBI. For granting registration to an FII, the SEBI takes into account the track record of the FII, its

professional competence, financial soundness, experience and such other criteria as may be consideredrelevant by SEBI. Besides, FIIs seeking initial registration with SEBI will be required to hold a registrationfrom an appropriate foreign regulatory authority in the country of domicile/incorporation of the FII.Indiahad 528 FIIs registered with SEBI by end of 2001 and by end of Mar-2009 the number increased to1581.The trend in the number of registered FIIsTable-3 has been consistently on the rise showing the significantamount of confidence that Indian Capital market has developed in the last few years. Not only has been thenumber increasing on a consistent basis, but the amount of inflow into Indian market has also seen amanifold increase. The gross purchase, sales and net investment Table-4 figure on monthly basis gives a fairidea about the consistency of their investments in our country.

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WHY FII INVEST IN INDIA:

As per the theory of international portfolio investment the basic motivation for any investorincluding the FIIs for investing in foreign equity is to diversify their portfolio, reduce the diversifiable riskand earn higher returns. Essentially this is a two-step decision. The first step is the choice of the country.Having decided on the host country, the FII has to decide about the portfolio composition or portfolio choicewithin the country concerned. In taking the first step, since international investments involve returns inforeign currency, the same have to be factored in the analysis.Consider an American investor buying stock of an Indian company. Let P0 and P1 be the stock prices at the

beginning and end of the investing period respectively. The domestic return in India on this stock can belabeled Rd, which would be as follows:

Rd = (P1-P0) /P0 .......................................................(1)

For the foreign investor, the return would be RF derived as follows:

RF = (X1P1- X0P0) /X0P0 .......................................... (2)where, X0, X1 denote the Rupee-Dollar exchange rate at the beginning and end of the investing period.

Any foreign equity investor simultaneously invests in the currency of the country whose stock ispurchased and returns on currency Rc would be as follows:

Rc = (X1-X0)/X0 ...................................................... (3)

From equations (1), (2) and (3) it can be shown that

1 + Rf= (1+Rd) (1+Rc) and Rf= Rd + Rc + RdRc

Since the product of Rd and Rc would be small, both being percentages and less than 1.0, it can be concludedthat Rf approximates to (Rd+Rc). Taking variance of this approximation as a measure of risk to aninternational investor in domestic stock we have

VarRf= VarRd + VarRc + 2(Correlation of Rd and Rc) (Std.Deviation of Rd) (Std.Dev.of Rc)

where, Var stands for variance of expected returns, as measure of risk.

Now, risk for a foreign investor would be determined among other things by correlation between domesticreturns in the host country and returns on its currency, which can be very low or even negative. More

importantly, since correlations between stock returns in different countries are lower than correlationsamong stock returns in the same country, investment in foreign assets can reduce the overall risk for aninvestor holding an internationally diversified portfolio.

BSE MIDCAP AND BSE SMALLCAP INDEX

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BSE introduced the new index series called 'BSE Midcap' index and 'BSE Smallcap' index on April 11, 2005with base index value 1000 to track the performance of companies with relatively smaller marketcapitalization. The market capitalisation of the company represents the total dollar value of the company'soutstanding shares. This is equal to the current market price of its stock multiplied by the number of sharesof stock that it has outstanding. That number gives you the market value of the company, which is one

measure of the company's size. Roughly speaking, there are three basic categories of market capitalisation:largecap, midcap and smallcap.The definitions for each of these might vary somewhat depending on whomyou are talking to, but usually they are as follows:

Largecap: Market Cap valued at more than $ 10 billionMidcap: Market cap valued between $ 2 billion and $ 10 billionSmallcap: Market cap valued at less than $ 2 billion

In general, the larger the cap size, the more established the company and the more stable the price of itsstock. Smallcap and Midcap companies usually have a higher potential for future growth than largecapcompanies,but their stock tends to fluctuate more in price.Midcap stocks are more risky than large capstocks and less risky than smallcap stocks. Then what makes a small & midcap attractive to investors is the

potential for growth that could result in a significant return on the shares of stock. Because the companyissuing the stock is considered to be growing, there is great potential for the price per share to increase overthe short term. For investors who wish to realize quick gains on their investments, these appear to be anideal investment. However, the enhanced potential for growth also carries an increased level of volatility. Astime goes on, the company could encounter unforeseen factors that inhibit the increase in the value of thestock. When this happens, the stock may become stagnant or even begin to fall in value.

In Smallcap and Midcap indices the numbers of companies are 464 and 221 respectively.

FOREIGN INSTITUTIONAL INVESTMENT: A COST - BENEFIT ANALYSIS

There are always some costs associated with a lot of benefits. So it is useful to summarize the benefits andcosts for India of having foreign inflows.

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BENEFITS

A) Reduced cost of Equity:FII investment reduces the required rate of return for equity, enhances stock prices, and fosters investment

by Indian firms in the country.

B) Knowledge Flows:The activities of international institutional investors help strengthen Indian finance. FIIs advocate modernideas in market design, promote innovation, development of sophisticated products such as financialderivatives, enhance competition in financial intermediation and lead to spillovers of human capital byexposing Indian participants to modern financial techniques and international best practices and systems.

C) Strengthening Corporate Governance:Domestic institutional and individual investors, used as they are to the ongoing practices of Indian corporate,often accept such practices, even when these do not measure up to the International benchmarks of best

practices. FIIs, with their vast experience with modern corporate governance practices, are less tolerant of

malpractice by corporate managers and owners (dominant shareholder). FII participation in domestic capitalmarkets often lead to vigorous advocacy of sound corporate governance practices, improved efficiency andbetter shareholder value.

D) Improving Market Efficiency:A significant presence of FIIs in India can improve market efficiency through two channels. First, whenadverse macroeconomic news, such as a bad monsoon, unsettles many domestic investors, it may be easierfor a globally diversified portfolio manager to be more dispassionate about India's prospects and engage instabilizing trades. Second, at the level of individual stocks and industries, FIIs may act as a channel throughwhich knowledge and ideas about valuation of a firm or an industry can more rapidly propagate into India.

COSTS

A) Create Volatility:There are concerns that foreign investors may withdraw their money at the hint of a trouble in India or firm.This will make others to also take out their money creating volatility in the market.

B) Possibility of Takeovers:While FIIs are normally seen as pure portfolio investors, without interest in control, portfolio investors canoccasionally behave like FDI investors and seek control of companies that they have a substantialshareholding in. Such outcomes, however, may not be inconsistent with India's quest for greater FDI.

ANALYSIS

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The introduction of Midcap & Smallcap Indices at Bombay Stock Exchange was on April 11,2005 so for thepurpose of statistical analysis I have considered four years monthly data from April-2005 to March-2009 ofFII Investments,BSE Midcap,Smallcap & Sensex Indices and scripwise quarterly data of FII Shareholding.Correlation Test has been carried out to find the degree of association between the FII Gross Purchases andBSE Midcap & Smallcap Indices; Sensex and Midcap & Smallcap Indices;FII Shareholding & Scripwise

price. I have considered closing price for Sensex, Midcap & Smallcap Indices and various scrips. First of allcorrelation between sensex and midcap & smallcap indices is carried out to verify relation between them.

CORRELATION TEST:

A) Midcap & Smallcap Indices Vs Sensex & Gross Purchase:

SENSEX FII GROSS PURCHASE

MIDCAP INDEX 0.947956419 0.825463052

SMALLCAP INDEX 0.896880823 0.794646577

(refer Annexture

1,2,3)Table-1

B) Scripwise Price Vs FII Shareholding:

COMPANY NAME FII

SHAREHOLDING

MIDCAP JSW Steel Ltd. 0.545181642

United Phosphorus Ltd. -0.258261613

Colgate Palmolive India Ltd 0.624952178

Federal Bank Ltd 0.300078199

Jain Irrigation Systems Ltd 0.561075571

Lupin Ltd 0.189994534

INDIAN HOTELS COMPANY LTD 0.446184332

Voltas Ltd 0.093306698

Tata Tea Ltd 0.342942159

Mphasis Ltd -0.318073722

SMALLCAP South Indian Bank Ltd 0.619250624

Kesoram Industries Ltd 0.773371425

Gammon India Ltd 0.111440389

Raymond Ltd 0.356246159NIIT LTD -0.051450138

United Breweries Holdings Ltd 0.056704137

Bombay Dyeing & Manufacturing Company Ltd 0.519389221

Mahindra Lifespace Developers Ltd -0.191815788

TVS Motor Company Ltd 0.584577343

Rain Commodities Ltd 0.584286285

Table-2

Sensex of Bombay Stock Exchange is considered as the barometer of Indian Capital Market. So first of all I

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begin with analyzing the relation between Sensex and Midcap & Smallcap Indices. From the Graph-1between Midcap Index and Sensex we can find co-movement between two indices leaving some monthsAugust-2005, March-2006, April-2006 and November-2007. From the Graph-2 between Smallcap Index andSensex we can find co-movement between two indices leaving some months August-2005, June-2006 and

November-2007 .This inference is further supported by high degree of correlation coefficient obtainedbetween two variables in the Table-1 above. This high degree of correlation further suggests that there issome Indirect/Direct correlation between the Midcap & Smallcap Indices and FIIs investments.

FIIs gross purchases have been taken as independent variable to find the impact of FII because net invest-ments involve negative values when there are more sales as compared to purchases but Midcap & SmallcapIndices values are always positive instead of major falls/gains in the Indices. By taking Gross Purchases Ihave tried to eliminate this mathematical error and used gross purchases fluctuations to find the relation be-tween the two.FII invest in scrips of these Indices because they provide higher returns as compared to large-cap scrips. Table-1 indicates a high degree of correlation between Midcap & Smallcap Indices and FIIs gross

purchases. Analysis of Graph-3 & Graph-4 indicates that there is a co-movement between the two variablesbarring the period Jun-2005 to Aug-2005, Nov-2007 to Jan-2008 indicating negative correlation. DuringNov-2007 to Jan-2008 the FII purchases decreased because during the month of Oct-2007 Indian govern-

ment took some strict measure to control the usage of the Participatory notes. This lead the FII to withdrawfrom the Indian market as they were not sure of how the measure taken by the govt will be implemented.During the month of Dec-2007 the subprime losses caused the decrease in purchases by the FII. As the sub-

prime losses mainly hit the US economy and the majority of FII participating in the Indian capital market arefrom US. Graph-5 represents the relation between gross purchases and gross sales. We can see from thegraph that gross purchases are increasing from Apr-2005 to Mar-2006 & Jul-2006 to Oct-2007 and whenevergross sales are lower than gross purchases there is upward trend in both Indices leaving some exceptions asthere are certain other factors like foreign exchange rate, interest rate, political conditions of the countryetc.which affect the indices movement. This analysis indicates the impact of FIIs on Indices. An FII drivenmarket can impact the real economy indirectly, when their behavior in the market exerts pressure on policymakers. Secondly, the wealth effect where capital gains are translated into increased consumption and in-

vestment, can act as a more direct link between equity and physical markets.

FIIs are always considered to increase the volatility of market. Volatility is often viewed as a negative in thatit represents uncertainty and risk. However, volatility can be good in that if one shorts on the peaks, and

buys on the lows one can make money, with greater money coming with greater volatility. The possibilityfor money to be made via volatile markets is how short term market players like day traders hope to makemoney, and is in contrast to the long term investment view of buy and hold. Foreign institutional investmentis certainly volatile in nature and its volatility has certainly posed some threats to the Indian stock marketconsidering its influence on the market. Increase in investment by FIIs cause sharp price increase. It would

provide additional incentives for FII investment and this encourages further investment so that there is a ten-dency for any correction of price and when the correction begins it would have to lead by an FII pullout and

can take the form of extremely sharp decline in the share prices.Graph-5 clearly indicates this fact thatwhenever there are more purchases as compared to sales than there is increase in the value of Indices andwhenever there are more sales as compared to purchases there is decrease in Indices.

Table-2 indicates varying degrees of correlation between FII shareholding and Scripwise price of samplecompanies of Midcap & Smallcap Indices but if we take the average of quarterly data of FII shareholding &Scripwise price it shows significant co-movement. The growing significance of FIIs in the Midcap &Smallcap Indices can be observed from the increase in average percentage share of FIIs in samplecompanies of Midcap & Smallcap Indices, which has increased from 14.513% in Jun 2005 to 25.04% inDec- 2007 in Midcap companies and from 11.618% in Jun-2005 to 25.555% in Sep-2007 in Smallcapcompanies. We can see negative correlation between FII shareholding and Scripwise price of sample

companies of Midcap & Smallcap Indices because only FIIs are not responsible for the fluctuations insteadthere are other factors like company specific factors, speculative trading, interest rate prevailing in themarket, political factors, government policies related to specific sectors etc. which cause a significant

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change in the prices.

RESULTS

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There is a continuous increase in the number of registered FIIs and the Gross purchases made bythem.

The movements in Midcap & Smallcap Indices and Sensex are highly correlated.

The movement of FIIs gross purchases follows almost significant influence on the movement of

Midcap & Smallcap Indices. When there is a downward trend in FIIs due to huge selling, there isdecline in Midcap & Smallcap Indices. On the other hand if there is an upward trend in FII due tomore gross purchases as compared to selling, Indices rises.

The high degree of volatility in stock market is due to1) The increase in investment by FIIs which increases stock indices that in turn increases the

price and encourages further investments. In this event when any correction takes place thestock price decline and there will be pull out by the FII in a large number as earning pershares declines.

2) The FIIs manipulate the situation of boom in such a manner that they will wait till the indexrises up to a certain height and exit at an appropriate time. This tendency increases the

volatility further.

There is a continuous increase in FII shareholding of companies of Midcap & Smallcap Indices.

Together with FIIs there are also other factors which influence the movement of Indices and stockprices like company specific factors, speculative trading, interest rate prevailing in the market,political factors, government policies related to specific sectors etc.

CONCLUSION

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In the Indian stock market FIIs have a disproportionately high level of influence on the market sentimentsand price trends. Results of the study shows the linkages between the FIIs inflows and the performance ofMidcap & Smallcap Indices are robust and significant.FIIs have significant impact on the share prices of theMidcap & Smallcap Indices companies and their active trading behaviour.Small and periodic shifts in their

behavior leads to market volatility.

Lastly I would like to recommend that Government should certainly encourage Foreign InstitutionalInvestment but should keep a check on the volatility factor. Long term funds should be given priority andencouraged. Some of the actions that could be taken to ensure stability are

Strengthening domestic Institutional Investors

Operational flexibility to impart stability to the market

Knowledge activities and research programs

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APPENDIX

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HISTORICAL DATASHEET

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FII REGISTERED IN INDIA

FINANCIAL YEAR DURING THE YEAR TOTAL REGISTERED

1992-93 0 0

1993-94 3 3

1994-95 153 156

1995-96 197 353

1996-97 99 439

1997-98 59 496

1998-99 59 450

1999-00 56 506

2000-01 84 528

2001-02 48 490

2001-03 51 502

2003-04 83 540

2004-05 145 685

2005-06 131 803

2006-07 247 993

2007-08 253 1219

2008-09 232 1581

Table-3

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FII INVESTMENT (Rs. Crore) Midcap Index Smallcap Index Sensex

Month

Gross

Purchase

Gross Sales Net

Purchase/Sales close close close

April-2005 15261.7 16308.8 -1047.1 3049.65 3839.25 6154.44

May-2005 15522.6 16330.2 -807.6 3263.27 4300.84 6715.11

June-2005 27693.1 21931 5762.1 3310.35 4396.21 7193.85

July-2005 25589.3 17377.1 8212.2 3680.92 4919.51 7635.42

August-200526455.1 22042.5 4412.6

4064.49 5925.14 7805.43September-2005 24160.7 20056.1 4122.6 4196.7 5697.69 8634.48

October-2005 25817.5 29623.1 -3805.6 3771.56 4952.5 7892.32

November-2005 23739.1 19290.5 4448.6 4175.19 5567.17 8788.81

December-2005 31563.4 22098.2 9465.2 4427.03 5943.11 9397.93

January-2006 34762.8 31542.1 3220.7 4716.53 6225.35 9919.89

February-2006 35603.1 28031.2 7571.9 4789.75 6144.48 10370.24

March-2006 53578.7 47046.4 6532.3 5348.62 6591.66 11279.96

April-2006 40415.6 39826.4 589.2 5843.29 7397.48 12042.56

May-2006 49338.2 57585.5 -8247.2 5052.44 6364.29 10398.61

June-2006 39845.6 38427.4 1418.2 4381.11 5357.04 10609.25

July-2006 24983.1 23535.2 1447.9 4303.28 5131.48 10743.88

August-2006 28104.6 23330.6 4774 4798.07 5778.99 11699.05September-2006 33014.2 26782.5 6231.7 5148.38 6161.73 12454.42

October-2006 27591.94 23013.3 4578.54 5396.13 6392.59 12961.9

November-2006 31146.96 24572.22 6574.74 5721.6 6647.08 13696.31

December-2006 37419.5 40830.4 -3410.9 5805.18 6892.32 13786.91

January-2007 47506.77 47412.32 94.45 6045.1 7503.5 14090.92

February-2007 51568.9 45503.9 6065 5508.74 6705.91 12938.09

March-2007 50552.6 49149.3 1403.3 5384.12 6470.51 13072.1

April-2007 44701.5 39269.7 5431.8 5795.72 6993.84 13872.37

May-2007 51574.9 47000.4 4574.5 6222.4 7413.03 14544.46

June-2007 54748.5 46808.9 7939.6 6527.03 7730.4 14650.51

July-2007 80216.2 62083.4 18132.8 6718.08 8070.63 15550.99

August-2007 58223.2 65750 -7526.8 6608.42 8060.52 15318.6

September-2007 70694.6 51746.1 18948.5 7422.43 9099.93 17291.1

October-2007 124882.3 109304.7 15577.6 8135.21 9796.86 19837.99

November-2007 89510 94107.4 -4597.4 8553.56 10526.02 19363.19

December-2007 80988.1 76091.4 4896.7 9789.49 13348.37 20286.99

January-2008 103129 120455.3 -17326.3 7766.62 10124.42 17648.71

February-2008 76437.1 71017.2 5419.9 7680.39 9628.13 17578.72

March-2008 70322.7 70198.3 124.4 6427.82 7841.62 15644.44

April-2008 62969.6 61990.6 979 7138.74 8773.57 17287.31

May-2008 60640.3 65557.6 -4917.3 6760.54 8133.04 16415.57

June-2008 61490.6 72068.3 -10577.7 5386.48 6701.96 13461.6

July-2008 64526.3 65539.2 -1012.9 5567.37 6912.79 14355.75August-2008 46401.9 48467.7 -2065.8 5742.29 6891.64 14564.53

September-2008 68029.6 75966.6 -7937 4798.29 5577.47 12860.43

October-2008 49339.3 63587.9 -14248.6 3200.02 3765.11 9788.06

November-2008 28273.8 31094.1 -2820.3 2885.76 3304.61 9092.72

December-2008 29197.6 27866.7 1330.9 3235.05 3683.11 9647.31

January-2009 29458.7 32573.6 -3114.9 2941.47 3339.05 9424.24

February-2009 21863.2 24553.7 -2690.5 2758.29 3106.01 8891.61

March-2009 32177.4 31908.4 269 2956.23 3246.63 9708.5

Table-4

22


23/47

MIDCAP COMPANY Quarter Percentage Shareholding of FII Closing Price

JSW Steel Jun , 05 9.34 251.2

Sep , 05 10.97 289.75

Dec , 05 15.33 229.3

Mar , 06 17.8 302.7

Jun , 06 19.34 275.15

Sep , 06 19.33 285.5

Dec , 06 18.76 386.9

Mar , 07 18.74 493.45

Jun , 07 23.41 611.45

Sep , 07 26.5 851.05

Dec , 07 29.03 1318.45

Mar , 08 26.36 819.1

Jun , 08 29.27 901.1

Sep , 08 28.23 480.2

Dec , 08 29.36 229.5

Mar , 09 29.03 231.85

UNITED PHOSPHORUS LTD Jun , 05 26.1 807.05Sep , 05 25.54 209.25

Dec , 05 28.23 240.05

Mar , 06 35.21 261.35

Jun , 06 35.35 236.55

Sep , 06 35.44 244.05

Dec , 06 35.13 300.35

Mar , 07 33.57 324.55

Jun , 07 34.98 311.1

Sep , 07 35.39 396.2

Dec , 07 44.49 348.8

Mar , 08 43.1 262.3

Jun , 08 41.63 280.15

Sep , 08 38.24 308.85

Dec , 08 35.27 107.6

Mar , 09 34.78 97.75

COLGATE PALMOLIVE INDIA LTD Jun , 05 4.83 243.95

Sep , 05 5.17 250.35

Dec , 05 7.2 269.35

Mar , 06 10.06 432.05

Jun , 06 9.94 388.95

Sep , 06 10.57 367.3

Dec , 06 11.39 388.5

Mar , 07 11.85 332.4Jun , 07 11.83 369.6

Sep , 07 10.92 401.9

Dec , 07 8.15 407.45

Mar , 08 7.84 382.35

Jun , 08 7.9 355.55

Sep , 08 8.19 403.4

Dec , 08 9.12 408.1

Mar , 09 10.09 470.75

Federal Bank Ltd Jun , 05 8.74 158.6

Sep , 05 15.51 187.5

Dec , 05 26.43 182.35Mar , 06 21.32 201.65

Jun , 06 30.46 166.25Sep , 06 33.16 211.75

23


24/47

Dec , 06 37.25 218.25

Mar , 07 33.64 215.55

Jun , 07 35.49 302.05

Sep , 07 38.13 372.05

Dec , 07 39.6 335.95

Mar , 08 42.05 216.3

Jun , 08 42.15 182

Sep , 08 42.79 204.5Dec , 08 39.93 162

Mar , 09 38.89 138.1

Jain Irrigation Systems Ltd Jun , 05 10.12 132.3

Sep , 05 33 171.1

Dec , 05 39.8 208.2

Mar , 06 35.16 250.75

Jun , 06 38.58 217.7

Sep , 06 40.35 275.1

Dec , 06 40.89 382.8

Mar , 07 42.98 417.55

Jun , 07 40.22 480.15

Sep , 07 41.93 546.05Dec , 07 41.31 645.85

Mar , 08 39.6 592.05

Jun , 08 43.22 486.95

Sep , 08 41.97 401.05

Dec , 08 41.1 350.3

Mar , 09 42.99 342.1

Lupin Ltd Jun , 05 13.92 695.1

Sep , 05 11.7 755.45

Dec , 05 12.35 766.85

Mar , 06 12.77 1018.6

Jun , 06 12.12 895Sep , 06 12.94 461.25

Dec , 06 13.58 612.05

Mar , 07 13.77 605.65

Jun , 07 10.84 732.55

Sep , 07 10.99 586.15

Dec , 07 13.46 633.7

Mar , 08 8.25 493.9

Jun , 08 12.41 666.85

Sep , 08 12.98 719.9

Dec , 08 11.85 617.85

Mar , 09 11.15 689.2

INDIAN HOTELS COMPANY LTD. Jun , 05 19.32 624.25Sep , 05 22.87 765

Dec , 05 23.46 988.05

Mar , 06 22.33 1356.9

Jun , 06 21.31 1143.35

Sep , 06 23.43 1384.3

Dec , 06 22.43 154.25

Mar , 07 24.07 145.4

Jun , 07 23.46 150.6

Sep , 07 22.56 138.15

Dec , 07 22.17 159.55

Mar , 08 19.28 111.85

Jun , 08 18.68 77.15

Sep , 08 17.19 67.4Dec , 08 17.43 45.05

24


25/47

Mar , 09 17.17 39.4

Voltas Ltd Jun , 05 11.4 229.55

Sep , 05 18.89 475.45

Dec , 05 21.84 599.7

Mar , 06 23.45 1004.75

Jun , 06 24.08 773.65

Sep , 06 24.48 103.5

Dec , 06 27.48 114.4Mar , 07 28.69 84.8

Jun , 07 29.99 111.25

Sep , 07 26.63 162.95

Dec , 07 26.48 246.25

Mar , 08 22.2 177.95

Jun , 08 19.99 123.75

Sep , 08 17.89 92.3

Dec , 08 15.26 60.3

Mar , 09 11.31 46.15

Tata Tea Ltd Jun , 05 19.03 620.05

Sep , 05 22.93 841.05

Dec , 05 22.3 948.35

Mar , 06 18.09 867.95

Jun , 06 17.1 765.5

Sep , 06 12.09 749.15

Dec , 06 11.51 720.05

Mar , 07 12.94 607.85

Jun , 07 12.47 852.75

Sep , 07 12.66 802.3

Dec , 07 13.18 905.65

Mar , 08 12.91 824.35

Jun , 08 14.51 746.95

Sep , 08 14.45 669.95Dec , 08 13.46 602.15

Mar , 09 13.44 585.65

Mphasis Ltd Jun , 05 22.33 277.05

Sep , 05 29.34 249.75

Dec , 05 31.23 149.2

Mar , 06 31.26 208.3

Jun , 06 16.28 151.55

Sep , 06 13.14 185.55

Dec , 06 13.83 303.45

Mar , 07 11.47 282.25

Jun , 07 11.61 328.35

Sep , 07 9.6 286Dec , 07 12.53 306.6

Mar , 08 13.79 200.1

Jun , 08 16.56 214.9

Sep , 08 15.38 189

Dec , 08 15.08 156.35

Mar , 09 11.69 199.2

Table-5

25


26/47

SMALLCAP COMPANY Quarter Percentage Shareholding of FII Closing Price (Rs.)

South Indian Bank Ltd Jun , 05 1.32 55.65

Sep , 05 4.19 73.65

Dec , 05 4.19 64.7

Mar , 06 18.48 61.65

Jun , 06 20.33 54.45

Sep , 06 27.28 69.55

Dec , 06 35.04 85.1Mar , 07 41.84 99

Jun , 07 43.21 127.1

Sep , 07 44.07 163.25

Dec , 07 46.86 222

Mar , 08 45.84 139.2

Jun , 08 42.74 100.85

Sep , 08 40.94 103.75

Dec , 08 39.71 56.75

Mar , 09 35.9 51.3

Kesoram Industries Ltd Jun , 05 6.64 114.75

Sep , 05 5.64 163.55

Dec , 05 4.95 153.75Mar , 06 5.87 211.9

Jun , 06 3.9 215.45

Sep , 06 5.73 503.55

Dec , 06 7.18 546.95

Mar , 07 7.43 342.95

Jun , 07 7.42 453.35

Sep , 07 9.07 578.95

Dec , 07 8.72 588

Mar , 08 5.96 391.75

Jun , 08 4.98 255.3

Sep , 08 4.84 216.75

Dec , 08 3.94 138.4

Mar , 09 3.99 135.35

Gammon India Ltd Jun , 05 9.05 264.15

Sep , 05 11.67 406.3

Dec , 05 13.51 414.3

Mar , 06 17.9 541.5

Jun , 06 24.93 349.7

Sep , 06 28.58 364.6

Dec , 06 29.79 419.5

Mar , 07 30.81 301.05

Jun , 07 32.8 410.75

Sep , 07 34.34 465.6Dec , 07 31.21 595.05

Mar , 08 28.26 388.55

Jun , 08 25.98 216.35

Sep , 08 24.77 138.15

Dec , 08 23.74 78.6

Mar , 09 25.06 58

Raymond Ltd Jun , 05 10.12 331.55

Sep , 05 10.53 390.7

Dec , 05 9.72 403.95

Mar , 06 7.58 517.7

Jun , 06 6.9 401.65

Sep , 06 5.2 451.1

Dec , 06 5.07 400.05

Mar , 07 4.63 341.55

26


27/47

Jun , 07 2.54 308.2

Sep , 07 2.53 324.1

Dec , 07 2.43 441.2

Mar , 08 4.52 297.65

Jun , 08 4.38 223.85

Sep , 08 4.44 134.7

Dec , 08 3.63 107.15

Mar , 09 4.46 76.45NIIT LTD Jun , 05 18.23 222.35

Sep , 05 22.35 296.25

Dec , 05 22.35 288.75

Mar , 06 29.88 296.4

Jun , 06 41.42 367.35

Sep , 06 41.74 330.3

Dec , 06 39.68 525.15

Mar , 07 38.78 696.8

Jun , 07 40.48 1003.15

Sep , 07 93.97 160.75

Dec , 07 43.71 156.8

Mar , 08 43.69 98Jun , 08 42.86 107.15

Sep , 08 42.66 51.45

Dec , 08 34.8 26.55

Mar , 09 28.02 20.25

United Breweries Holdings Ltd Jun , 05 24.45 446.95

Sep , 05 24.07 437.4

Dec , 05 15.33 524.85

Mar , 06 15.63 726.9

Jun , 06 18.63 444.95

Sep , 06 20.61 265.45

Dec , 06 23.35 345.05

Mar , 07 24.92 359.5

Jun , 07 25.01 609.2

Sep , 07 24.7 946.6

Dec , 07 29.9 1243.95

Mar , 08 28.88 717.75

Jun , 08 28.61 318.15

Sep , 08 27.76 227.25

Dec , 08 27.56 108.65

Mar , 09 24.9 75.5

Bombay Dyeing & ManufacturingCompany Ltd Jun , 05 11.49 336.2

Sep , 05 14.45 383.15Dec , 05 14.88 372.95

Mar , 06 14.23 595

Jun , 06 14.49 580.75

Sep , 06 13.91 754.95

Dec , 06 13.28 766.35

Mar , 07 14.51 540.85

Jun , 07 13.89 573.6

Sep , 07 13.56 675.1

Dec , 07 9.68 755.35

Mar , 08 6.68 614.3

Jun , 08 6.09 581.8

Sep , 08 5.12 371.55Dec , 08 3.52 193.15

Mar , 09 1.5 167.95Mahindra Lifespace Developers Ltd Jun , 05 22.29 140.1

27


28/47

Sep , 05 24.9 274.3

Dec , 05 26.49 395.9

Mar , 06 26.73 462.2

Jun , 06 12.96 603.9

Sep , 06 13.23 807.9

Dec , 06 30.69 876.3

Mar , 07 26.99 568.3

Jun , 07 26.35 555.4Sep , 07 22.78 618.6

Dec , 07 22.93 843.45

Mar , 08 21.28 413.2

Jun , 08 21.74 426.25

Sep , 08 23.18 342.35

Dec , 08 26.74 178.15

Mar , 09 25.65 132.15

TVS Motor Company Ltd Jun , 05 12.59 72.05

Sep , 05 12.42 92.75

Dec , 05 11.01 100.05

Mar , 06 8.93 140.05

Jun , 06 7.65 97.8Sep , 06 6.76 124.45

Dec , 06 4.1 87.3

Mar , 07 5.34 59.6

Jun , 07 4.44 60.9

Sep , 07 4.41 70.05

Dec , 07 4.28 72.45

Mar , 08 6 34.95

Jun , 08 3.68 26.45

Sep , 08 4.95 32.65

Dec , 08 3.43 22.5

Mar , 09 2.17 22.65

Rain Commodities Ltd Jun , 05 0 39.95

Sep , 05 0 47.95

Dec , 05 0 59.75

Mar , 06 0 87.05

Jun , 06 1.44 74.4

Sep , 06 1.38 173.05

Dec , 06 4 170.2

Mar , 07 4.73 119.65

Jun , 07 5.86 147.55

Sep , 07 6.12 175.55

Dec , 07 6.43 293.85

Mar , 08 6.5 195.1Jun , 08 7.56 177.65

Sep , 08 8.02 185.75

Dec , 08 7.61 90.25

Mar , 09 7.58 81

Table-6

28


29/47

MIDCAP & SMALLCAP INDICES VS SENSEX

29


30/47

MIDCAP Vs SENSE

0

2000

4000

6000

8000

10000

12000

April

-2005

May-2

005

June

-2005

July-

2005

Aug

ust-2005

September-2

005

October-2

005

Novembe

r-200

5

Decemb

er-2005

Janu

ary-20

06

Febru

ary-2006

March

-2006

April

-2006

May-2

006

June

-2006

July-

2006

Aug

ust-2006

Septembe

r-2006

Octobe

r-2006

November-2

006

Decemb

er-20

06

Janu

ary-20

07

Febru

ary-2007

March

-2007

April

-2007

May-2

007

June

-2007

July-

2007

Aug

ust-2

007

September-2

007

Octobe

r-200

7

Novembe

r-2007

Decemb

er-20

07

Janu

ary-2008

Febru

ary-2008

March

-2008

April

-2008

May-2

008

June

-2008

July-

2008

Aug

ust-2

008

September-2

008

Octobe

r-2008

Novembe

r-2008

Decemb

er-20

08

Janu

ary-2009

Febru

ary-2009

March

-2009

Month

MidcapIndex

0

5000

10000

15000

20000

25000

Sensex

Mi dc ap In de x S ens ex

Graph-1

S M A L L C A P V s S

0

200 0

400 0

600 0

800 0

1 000 0

1 200 0

1 400 0

1 600 0

April-2005

May-2005

June

-2005

July-

2005

Augu

st-20

05

Septe

mber-2005

Octobe

r-200

5

Nove

mber-2005

Decemb

er-20

05

Janu

ary-2006

Febru

ary-2006

March

-2006

April-2006

May-200

6

June

-2006

July-

2006

Augu

st-20

06

Septe

mber-2006

Octobe

r-200

6

Nove

mber-2006

Decemb

er-20

06

Janu

ary-2007

Febru

ary-2007

March

-2007

April-2007

May-2007

June

-2007

July-

2007

Augu

st-20

07

Septe

mber-2007

Octobe

r-200

7

Nove

mber-2007

Decemb

er-20

07

Janu

ary-2008

Febru

ary-2008

March

-2008

April-2008

May-2

008

June

-2008

July-

2008

Augu

st-20

08

Septe

mber-2008

Octobe

r-200

8

Nove

mber-2008

Decemb

er-20

08

Janu

ary-2009

Febru

ary-2009

March

-2009

M o n t

SmallcapIndex

0

50 0 0

1 0 0 0 0

1 5 0 0 0

2 0 0 0 0

2 5 0 0 0

Sensex

S m al lc ap Ind ex S ens e

Graph-2

30


31/47

FII INVESTMENT VS MIDCAP & SMALLCAP INDICES

31


32/47

FII INVESTMENT Vs MID

0

20000

40000

60000

80000

100000

120000

140000

April-2005

May-2

005

June-2005

July-2005

August-2005

Septe

mber-2005

Octob

er-2005

Nove

mbe

r-2005

Decemb

er-2005

January-2

006

February-2006

March

-2006

April-2006

May-2

006

June-2006

July-2006

August-2006

Septe

mber-2006

Octob

er-2006

Nove

mbe

r-2006

Decemb

er-2006

January-2

007

February-2007

March

-2007

April-2007

May-2

007

June-2007

July-2007

August-2007

Septe

mber-2007

Octobe

r-2007

Nove

mber-2007

Decemb

er-2007

January-2

008

February-2008

March

-2008

April-2008

May-2

008

June-2008

July-2008

August-2008

Septe

mber-2008

Octob

er-2008

Nove

mber-2008

Decemb

er-2008

January-2

009

February-2009

March

-2009

Month

GrossPurchase

0

2000

4000

6000

8000

10000

12000

MidcapIn

dex

Gross Purchase Midcap Index clos

Graph-3

FII INVESTMENT Vs SM ALLCA

0

20000

40000

60000

80000

100000

120000

140000

April-2005

May-2005

June-2005

July-2005

August-2005

Septe

mbe

r-2005

Octobe

r-2005

Novembe

r-2005

Decemb

er-2005

January-2006

February-2006

March

-2006

April-2006

May-2006

June-2006

July-2006

August-2006

Septe

mbe

r-2006

Octobe

r-2006

Novembe

r-2006

Decembe

r-2006

January-2007

February-2007

March

-2007

April-2007

May-2007

June-2007

July-2007

August-2007

Septe

mbe

r-2007

Octobe

r-2007

Novembe

r-2007

Decembe

r-2007

January-2008

February-2008

March-2008

April-2008

May-2008

June-2008

July-2008

August-2008

Septe

mbe

r-2008

Octobe

r-2008

Novembe

r-2008

Decembe

r-2008

January-2009

February-2009

March-2009

Month

GrossPurchase

0

2000

4000

6000

8000

10000

12000

14000

16000

SmallcapIndex

Gross Purchase Smallcap Index close

Graph-4

32


33/47

VOLATILITY ANALYSIS

33


34/47

VOLATILITY ANALYSIS

0

20000

40000

60000

80000

100000

120000

140000

April-200

5

May

-2005

June

-2005

July-

2005

August-200

5

Septembe

r-200

5

Octobe

r-2005

Novembe

r-2005

Decembe

r-200

5

January-200

6

February-200

6

March

-2006

April-200

6

May

-2006

June

-2006

July-

2006

August-200

6

Septembe

r-200

6

Octobe

r-2006

Novembe

r-200

Decembe

r-200

6

January-200

7

February-200

7

March

-2007

April-200

7

May

-2007

June

-2007

July-

2007

August-200

7

Septembe

r-200

7

Octobe

r-2007

Novembe

r-200

Decembe

r-200

7

January-200

8

Febr

uary-200

8

March

-2008

April-200

8

May

-2008

June

-2008

July-

2008

August-200

8

Septembe

r-200

8

Octobe

r-2008

Novembe

r-2008

Decembe

r-200

8

January-200

9

February-200

9

March

-2009

Month

GrossPurchases&

Sale

0

2000

4000

6000

8000

10000

12000

14000

16000

Midcap&Smallca

pIn

Gross

Purchase

Gross

Sales

Midcap Index Smal lcap Index

Graph-5


35/47

SCRIPWISE IMPACT OF FII SHAREHOLDING ON

PRICE MOVEMENT OF MIDCAP COMPANIES


36/47

JSW STEEL LTD.

0

5

10

15

20

25

30

35

Jun,05

Sep,05

Dec,

05

Mar

,06

Jun,06

Sep,06

Dec,06

Mar

,07

Jun,07

Sep,07

Dec,

07

Mar

,08

Jun,08

Sep,08

Dec,08

Mar

,09

Quarter Period

PercentageShareholdi

0

200

400

600

800

1000

1200

1400

ClosingPric

% shareholding closing price

Graph-6

UNITED PHOSPHORUS LTD

05

101520253035404550

Jun

,05

Sep

,05

Dec,

05

Mar

,06

Jun

,06

Sep

,06

Dec,

06

Mar

,07

Jun

,07

Sep

,07

Dec,

07

Mar

,08

Jun

,08

Sep

,08

Dec,

08

Mar

,09

Quarter Perio

PercentageShareholding

0

100200

300

400500

600

700800900

ClosingPrice


Graph-7


37/47

COLGATE PALMOLIVE INDIA LTD.

0

2

4

68

10

12

14

Jun,

05

Sep,

05

Dec,

05

Mar

,06

Jun,

06

Sep,

06

Dec,

06

Mar

,07

Jun,

07

Sep,

07

Dec,

07

Mar

,08

Jun,

08

Sep,

08

Dec,

08

Mar

,09

Quarter Period

PercentageSh

areholdin

0

50

100

150

200250300

350

400450

500

Closing

Pric


Graph-8

FEDER AL BAN K LT

05

10

15202530

354045

Jun,05

Sep,05

Dec,

05

Mar,

06

Jun,06

Sep,06

Dec,

06

Mar,

07

Jun,07

Sep,07

Dec,

07

Mar,

08

Jun,08

Sep,08

Dec,

08

Mar,

09

Quarter Perio


0

50

100

150

200

250

300

350400

ClosingPrice


Graph-9


38/47

JAIN IRRIGATION SYSTEMS LTD.

05

1015202530

35404550

Jun

,05

Sep

,05

Dec,

05

Mar

,06

Jun

,06

Sep

,06

Dec,

06

Mar

,07

Jun

,07

Sep

,07

Dec,

07

Mar

,08

Jun

,08

Sep

,08

Dec,

08

Mar

,09

Quarter Period


0

100

200

300400

500

600

700

ClosingP

rice


Graph-10

LUPIN LTD.

0

2

4

6

8

10

12

14

16

Jun

,05

Sep

,05

Dec,

05

Mar

,06

Jun

,06

Sep

,06

Dec,

06

Mar

,07

Jun

,07

Sep

,07

Dec,

07

Mar

,08

Jun

,08

Sep

,08

Dec,

08

Mar

,09

Quarter Period


0

200

400

600

800

1000

1200

ClosingPrice


Graph-11


39/47

INDIAN HOTELS COM PANY LT

0

5

10

15

20

25

30

Jun,05

Sep,05

Dec,05

Mar,06

Jun,06

Sep,06

Dec,06

Mar,07

Jun,07

Sep,07

Dec,07

Mar,08

Jun,08

Sep,08

Dec,08

Mar,09

Quarter Perio


0

200

400

600

800

1000

1200

1400

1600

ClosingPrice


Graph-12

VOLTAS LTD

0

5

10

15

20

25

30

35

Jun

,05

Sep

,05

Dec,

05

Mar

,06

Jun

,06

Sep

,06

Dec,

06

Mar

,07

Jun

,07

Sep

,07

Dec,

07

Mar

,08

Jun

,08

Sep

,08

Dec,

08

Mar

,09

Quarter Period

Percentage

Shareholding

0

200

400

600

800

1000

1200

ClosingPrice


Graph-13


40/47

TATA TEA LT

0

5

10

15

20

25

Jun

,05

Sep

,05

Dec

,05

Mar

,06

Jun

,06

Sep

,06

Dec

,06

Mar

,07

Jun

,07

Sep

,07

Dec

,07

Mar

,08

Jun

,08

Sep

,08

Dec

,08

Mar

,09

Quarter Per io


0100200300400500600

7008009001000

ClosingPrice

% shareholding closing pric

Graph-14

M PHASIS LT

0

5

10

15

20

25

30

35

Jun,

05

Sep,05

Dec,

05

Mar,

06

Jun,

06

Sep,

06

Dec,

06

Mar,

07

Jun,

07

Sep,07

Dec,

07

Mar,

08

Jun,

08

Sep,

08

Dec,

08

Mar,

09

Quarter Per io


0

50

100

150

200

250

300

350

ClosingPrice


Graph-15


41/47

SCRIPWISE IMPACT OF FII SHAREHOLDING

ON PRICE MOVEMENT OF SMALLCAP

COMPANIES


42/47

SOUTH INDIAN BANK LT

05

1015

202530

3540

4550

Ju

n,05

Sep

,05

De

c,05

Mar

,06

Ju

n,06

Sep

,06

De

c,06

Mar

,07

Ju

n,07

Sep

,07

De

c,07

Mar

,08

Ju

n,08

Sep

,08

De

c,08

Mar

,09

Quarter Perio


0

50

100

150

200

250

ClosingPrice


Graph-16

KESORAM INDUSTRIES L

0123456789

10

Jun,

05

Sep,

05

Dec,

05

Mar

,06

Jun,

06

Sep,

06

Dec,

06

Mar

,07

Jun,

07

Sep,

07

Dec,

07

Mar

,08

Jun,

08

Sep,

08

Dec,

08

Mar

,09

Quarter Perio


0

100

200

300

400

500

600

700

ClosingPrice


Graph-17


43/47

GAM M ON IND IA L

0

5

10

15

20

25

30

35

40

Jun,05

Sep,05

Dec,05

Mar,06

Jun,06

Sep,06

Dec,06

Mar,07

Jun,07

Sep,07

Dec,07

Mar,08

Jun,08

Sep,08

Dec,08

Mar,09

Quarter Peri


0

100

200

300

400500

600

700

ClosingPrice


Graph-18

RAYM OND LT

02

4

6

8

10

12

Jun,

05

Sep,

05

Dec,

05

Mar,

06

Jun,

06

Sep,

06

Dec,

06

Mar,

07

Jun,

07

Sep,

07

Dec,

07

Mar,

08

Jun,

08

Sep,

08

Dec,

08

Mar,

09

Quarter Peri

Perc

entageShareholding

0100

200

300

400

500

600

ClosingPrice


Graph-19


44/47

NIIT LTD

0102030405060

708090

100

Ju

n,05

Sep,

05

De

c,05

Mar

,06

Ju

n,06

Sep,

06

De

c,06

Mar

,07

Ju

n,07

Sep,

07

De

c,07

Mar

,08

Ju

n,08

Sep,

08

De

c,08

Mar

,09

Quarter Peri

PercentageShareh

olding

0

200

400

600800

1000

1200

ClosingPrice


Graph-20

UNITED BR EWERIES HOLDINGS L

0

5

10

15

20

25

30

35

Jun,

05

Sep,

05

Dec,

05

Mar,

06

Jun,

06

Sep,

06

Dec,

06

Mar,

07

Jun,

07

Sep,

07

Dec,

07

Mar,

08

Jun,

08

Sep,

08

Dec,

08

Mar,

09

Quarter Perio


0

200

400

600

800

1000

1200

1400

ClosingPrice


Graph-21


45/47

BOM BAY DYEING & M ANUFACTURI

COMPANY LTD.

0

2

4

6

8

10

12

14

16

Jun,05

Sep,05

Dec,

05

Mar

,06

Jun,06

Sep,

06

Dec,

06

Mar

,07

Jun,07

Sep,

07

Dec,

07

Mar

,08

Jun,08

Sep,08

Dec,

08

Mar

,09

Quarter Perio

Percentage

Shareholdin

g

0100200300400500600

700800900

ClosingPric

e


Graph-22

MAHINDRA LIFESPACE DEVELOPERS

05

10

15

20

25

30

35

Jun,

05

Sep,

05

Dec,

05

Mar,

06

Jun,

06

Sep,

06

Dec,

06

Mar,

07

Jun,

07

Sep,

07

Dec,

07

Mar,

08

Jun,

08

Sep,

08

Dec,

08

Mar,

09

Quarter Peri

Per

centageShareholding

0100

200

300400500600700

8009001000

ClosingPrice


Graph-23


46/47

TVS M OTOR COM PANY L

0

2

4

6

8

10

12

14

Jun

,05

Sep,05

Dec,05

Mar,

06

Jun

,06

Sep,06

Dec,06

Mar,

07

Jun

,07

Sep,07

Dec,07

Mar,

08

Jun

,08

Sep,08

Dec,08

Mar,

09

Quarter P eri

PercentageShareh

olding

0

20

40

60

80100

120

140

160

ClosingPric

e


Graph-24

RAIN COM M ODITIES LT

012

3

45

67

89

Jun,

05

Sep,05

Dec,

05

Mar,

06

Jun,

06

Sep,

06

Dec,

06

Mar,

07

Jun,

07

Sep,07

Dec,

07

Mar,

08

Jun,

08

Sep,

08

Dec,

08

Mar,

09

Quarter Perio


0

50

100

150

200

250

300

350

ClosingPrice


Graph-25


47/47

REFERENCES

Research Papers:

S S S Kumar 'Role of Institutional Investors in Indian Stock Markets'

Suresh Babu, M. and Prabheesh, K.P. (2008) Causal relationships between ForeignInstitutional Investments and stock returns in India

Chakrabarti, R. (2001) FII flows to India: Nature and causes

Books:

Chopra, C. (2003) Foreign Investment in India

Avadhani, V.A. (2004) Securities Analysis and Portfolio Management

Websites:

http://en.wikipedia.org/wiki/Foreign_Institutional_Investor

http://money.rediff.com/indices/bse/bsesmallcap

www.bseindia.com

www.sebi.gov.in

www.moneycontrol.com

www.myiris.com

www.coolavenues.com
http://en.wikipedia.org/wiki/Foreign_Institutional_Investorhttp://money.rediff.com/indices/bse/bsesmallcaphttp://www.bseindia.com/http://www.sebi.gov.in/http://www.moneycontrol.com/http://www.myiris.com/http://www.coolavenues.com/http://en.wikipedia.org/wiki/Foreign_Institutional_Investorhttp://money.rediff.com/indices/bse/bsesmallcaphttp://www.bseindia.com/http://www.sebi.gov.in/http://www.moneycontrol.com/http://www.myiris.com/http://www.coolavenues.com/

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A Study of Impact of Foreign Institutional Investors on Midcap & Smallcap Market

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