Friday, January 23, 2009

FIIs' thumbs down to construction stocks

FIIs' thumbs down to construction stocks
BS Research / Mumbai January 11, 2009, 0:13 IST

Foreign Institutional Investors (FIIs) offloaded 7.43 million shares of four construction sector stocks — Housing Development and Infrastructure (HDIL), ICSA (India), Indiabulls Real Estate and IVRCL Infrastructure and Projects — through block deals last week.

Goldman Sachs Investments Mauritius, Morgan Stanley Mauritius, Merrill Lynch Capital Markets and TCI Cyprus Holding sold shares in block deals valued at Rs 88.70 crore. The names of block deals buyers are not yet disclosed by the stock exchange.

All these four stocks declined over 24 per cent each last week as compared to 5.5 per cent fall in the Sensex, on the market perception that most of the firms from the realty and infrastructure sectors do not strictly follow good corporate governance practices.

TCI Cyprus Holding sold 3.50 million equity shares of HDIL valued at Rs 41.65 crore at an average market price of Rs 119.17 on NSE. The stock declined by 26.7 per cent from Rs 143.05 to Rs 104.80 in one week.

Goldman Sachs Investments Mauritius sold its holding in Indiabulls Real Estate via block deals. It holding were at 2.64 million shares at the end of September 2008, which has come down to 0.23 million shares on account of a block deal of 2.41 million shares last week. The stock fell by 24 per cent from Rs 151.60 to Rs 114.95 during the week.

Morgan Stanley Mauritius offloaded 247,851 equity shares of ICSA (India) at an average market price of Rs 152.69. The stock closed at a two-year low, down 28.2 per cent from Rs 143.30 to Rs 102.95. IVRCL Infrastructure also fell by 25.2 per cent, from Rs 161.15 to Rs 120.60, after the Merrill Lynch Capital Markets sold 1.28 million shares worth of Rs 15.80 crore via block deals.

Correction:

ICSA is in the power ancillary business, and not construction as reported. The error is regretted.

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