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

 CERTIFICATE

This is to certify that Mr. Gopal Agarwal a student of Master of Business Administration, Medicaps
Institute of Technology & Management, Indore, has successfully completed his project under my
supervision.

During this period he worked on the project titled “A STUDY OF IMPACT OF FOREIGN
INSTITUTIONAL INVESTORS ON MIDCAP & SMALLCAP MARKET” in fulfillment for the
award of degree of Master of Business Administration of Devi Ahilya Vishwavidhyalaya, Indore.His
performance and conduct has been good.

HEAD OF DEPARTMENT PROJECT GUIDE

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

Director Lecturer

2
 ACKNOWLEDGEMENT

I want to express my sincere gratitude to all those who made this study possible. First of all I am thankful
to the helpful staff and the faculty of Medicaps Institute of Technology & Management. One of the most
important tasks in every good study is its critical evaluation and feedback which was provided to me by
my guide Mrs. Prerna Shrivastava.I am also thankful to Mr. Vardhan Choubey for investing his
precious time to discuss and criticize this study in depth and explained the meaning of different concepts
and how to think 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 Angel
Broking Ltd.” for his support and guidance for the project.

(Gopal Agarwal)

3
 CONTENT

Abstract

I Introduction........................................................................................................... 6
II Rationale of Study………………………………………………………………. 7
III Objective............................................................................................................... 8
IV Research Methodology ........................................................................................ 9
V Foreign Institutional Investors………………………………………………….. 10
V.i FII registered in India
V.ii Why FII Invest in India
VI BSE Mid-Cap and BSE Small-Cap Index………………………………………. 12
VII Foreign Institutional Investment: A Cost - Benefit Analysis……………………. 13
VIII Analysis…………………………………………………………………………. 14
IX Results…………………………………………………………………………... 17
X Conclusion………………………………………………………………………. 18

Appendix
Historical Datasheet
Midcap & Smallcap Indices Vs Sensex
FII Investment Vs Midcap & Smallcap Indices
Volatility Analysis
Scripwise Impact of FII Shareholding on Price Movement of Midcap Companies
Scripwise Impact of FII Shareholding on Price Movement of Smallcap Companies

References

4
 ABSTRACT

Foreign Institutional Investors have gained a significant role in Indian capital market. This project
analyses the impact of foreign institutional investment particularly among Midcap & Smallcap market of
Bombay Stock Exchange. Analyzing the relationship between foreign institutional investment and
movement of indices 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
and also FII gross purchases show high degree of correlation with Midcap and Smallcap Indices.FIIs are
also responsible for volatility in the stock market.

5
 INTRODUCTION

The increasing role of institutional investors has brought both quantitative and qualitative developments in
the stock market viz.; expansion of securities business; increased depth and breadth of the market, and
above all their dominant investment philosophy of emphasizing the fundamentals have rendered efficient
pricing of the stocks. The FIIs are major institutional investors in Indian capital market. Movement in the
sensex has clearly been driven by the behavior of Foreign Institutional Investors. The presence of Foreign
Institutional Investors in the BSE Midcap & Smallcap companies and their active trading behaviours, their
role in determining the share price movements must be considerable. Indian stock markets are known to
be known narrow and shallow in the sense that there are few companies whose shares are actively traded.
Although there are more than 8000 companies listed with stock exchange, the BSE Midcap & Smallcap
Index incorporates only 685 companies. This shallowness also means that the FIIs can also affect the
behavior of other 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-earning
ratio and thereby reduce the cost of capital domestically. Lower cost of funds on account of low interest
rates will aid the economic recovery and support valuations; Net FII inflows into India increased steadily
since the mid 1990s and reached Rs. 32000 crore in 2009. Along with this surge in FII inflows there has
also been a boom in the Indian capital market as indicated by the stock market indices and market
capitalisation. The surge in capital inflows could be viewed as an outcome of a combination of ‘push’ and
‘pull’ factors, of which stagnant returns from the previous investment destinations and the present rate of
growth 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 prices and returns in Indian capital market.

6
 RATIONALE OF STUDY

Foreign Institutional Investors are said to be the drivers of the market. They are the cause behind the rise
and fall of Sensex. FII investment trends tell us about many effects that the Indian market is experiencing.
The companies in which they invest are getting overvalued. Whenever FII find any trouble they withdraw
their investments.
There is a lot of discussion in the market about Sensex of BSE but many of us do not talk
about other Indices like BSE Midcap and Smallcap which are high growth oriented and risky investment
avenues.The return provided by them is high as compared to Sensex scrips. FIIs are also interested in
investment in these scrips and impact these indices. So inorder to find the impact of FII on these market I
had taken this study.

7
 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 of
investments 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.

8
 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
of knowledge 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
is on” A Study of Impact of Foreign Institutional Investors on Midcap & Smallcap Markets “.I am
focusing my research on Midcap & Smallcap market of Bombay Stock Exchange.In this research I have
used FIIs gross purchases data to find the relation with Midcap & Smallcap Indices. I have used both FIIs
gross purchases & sales data to analyse the volatility. I have taken closing prices of Midcap & Smallcap
companies & 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

9
 FOREIGN INSTITUTIONAL INVESTOR

Foreign Institutional Investor (FII) is used to denote an investor - mostly of the form of an
institution or entity, which invests money in the financial markets of a country different from the one
where in 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
foreign funds to India. Today, FIIs are permitted to invest in all securities traded on the primary and
secondary markets, including equity shares and other securities listed or to be listed on the stock
exchanges. The original guidelines were issued in September 1992. Subsequently, the Securities and
Exchange Board of India (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
include institutions such as pension funds, mutual funds, investment trusts, asset management companies,
nominee companies, incorporated/institutional portfolio managers, university funds, endowments,
foundations and charitable trusts/societies with a track record. Proprietary funds have also been permitted
to make investments through the FII route subject to certain conditions.

FIIs can invest in all securities traded on the primary and secondary markets. Such investments include
equity/debentures/warrants/other securities/instruments of companies unlisted, listed or to be listed on a
stock exchange 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 that there are no restrictions on the volume of investment - minimum or maximum - for the
purpose of entry of FIIs. There is also no lock-in period prescribed for the purpose of such investments.
Further, FIIs can repatriate capital gains, dividends, incomes received by way of interest and any
compensation received towards sale/renouncement of rights offering of shares subject to payment of
withholding tax at source. The net proceeds 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 with
SEBI. 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 considered
relevant by SEBI. Besides, FIIs seeking initial registration with SEBI will be required to hold a
registration from an appropriate foreign regulatory authority in the country of domicile/incorporation of
the FII.India had 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 FIIs“Table-3” has been consistently on the rise
showing the significant amount of confidence that Indian Capital market has developed in the last few
years. Not only has been the number increasing on a consistent basis, but the amount of inflow into Indian
market has also seen a manifold increase. The gross purchase, sales and net investment “Table-4” figure on
monthly basis gives a fair idea about the consistency of their investments in our country.

10
WHY FII INVEST IN INDIA:

As per the theory of international portfolio investment the basic motivation for any investor
including the FIIs for investing in foreign equity is to diversify their portfolio, reduce the diversifiable risk
and 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
choice within the country concerned. In taking the first step, since international investments involve
returns in foreign 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 be
labeled 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 is
purchased 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
concluded that Rf approximates to (Rd+Rc). Taking variance of this approximation as a measure of risk to
an international 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 domestic
returns 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 correlations
among stock returns in the same country, investment in foreign assets can reduce the overall risk for an
investor holding an internationally diversified portfolio.

11
 BSE MIDCAP AND BSE SMALLCAP INDEX

BSE introduced the new index series called 'BSE Midcap' index and 'BSE Smallcap' index on April 11,
2005 with base index value 1000 to track the performance of companies with relatively smaller market
capitalization. The market capitalisation of the company represents the total dollar value of the company's
outstanding shares. This is equal to the current market price of its stock multiplied by the number of shares
of 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
whom you are talking to, but usually they are as follows:
Largecap: Market Cap valued at more than $ 10 billion
Midcap: Market cap valued between $ 2 billion and $ 10 billion
Smallcap: 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 its
stock. Smallcap and Midcap companies usually have a higher potential for future growth than largecap
companies,but their stock tends to fluctuate more in price.Midcap stocks are more risky than large cap
stocks 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
company issuing the stock is considered to be growing, there is great potential for the price per share to
increase over the short term. For investors who wish to realize quick gains on their investments, these
appear to be an ideal investment. However, the enhanced potential for growth also carries an increased
level of volatility. As time goes on, the company could encounter unforeseen factors that inhibit the
increase in the value of the stock. 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

12
There are always some costs associated with a lot of benefits. So it is useful to summarize the benefits and
costs for India of having foreign inflows.

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 modern
ideas in market design, promote innovation, development of sophisticated products such as financial
derivatives, enhance competition in financial intermediation and lead to spillovers of human capital by
exposing 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 capital markets often lead to vigorous advocacy of sound corporate governance practices,
improved efficiency and better shareholder value.

D) Improving Market Efficiency:

A significant presence of FIIs in India can improve market efficiency through two channels. First, when
adverse macroeconomic news, such as a bad monsoon, unsettles many domestic investors, it may be easier
for a globally diversified portfolio manager to be more dispassionate about India's prospects and engage in
stabilizing trades. Second, at the level of individual stocks and industries, FIIs may act as a channel
through which 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
can occasionally behave like FDI investors and seek control of companies that they have a substantial
shareholding in. Such outcomes, however, may not be inconsistent with India's quest for greater FDI.

13
 ANALYSIS

The introduction of Midcap & Smallcap Indices at Bombay Stock Exchange was on April 11,2005 so for
the purpose of statistical analysis I have considered four years monthly data from April-2005 to March-
2009 of FII 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 and BSE 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 all correlation 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 0.356246159
NIIT 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
14
Sensex of Bombay Stock Exchange is considered as the barometer of Indian Capital Market. So first of all
I begin with analyzing the relation between Sensex and Midcap & Smallcap Indices. From the Graph-1
between Midcap Index and Sensex we can find co-movement between two indices leaving some months
August-2005, March-2006, April-2006 and November-2007. From the Graph-2 between Smallcap Index
and Sensex 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 obtained
between two variables in the Table-1 above. This high degree of correlation further suggests that there is
some 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
investments involve negative values when there are more sales as compared to purchases but Midcap &
Smallcap Indices values are always positive instead of major falls/gains in the Indices. By taking Gross
Purchases I have tried to eliminate this mathematical error and used gross purchases fluctuations to find
the relation between the two.FII invest in scrips of these Indices because they provide higher returns as
compared to largecap 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 variables barring the period Jun-2005 to Aug-2005, Nov-2007 to Jan-2008 indicating
negative correlation. During Nov-2007 to Jan-2008 the FII purchases decreased because during the month
of Oct-2007 Indian government took some strict measure to control the usage of the Participatory notes.
This lead the FII to withdraw from 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 subprime losses mainly hit the US economy and the majority of FII
participating in the Indian capital market are from US. Graph-5 represents the relation between gross
purchases and gross sales. We can see from the graph that gross purchases are increasing from Apr-2005
to Mar-2006 & Jul-2006 to Oct-2007 and whenever gross sales are lower than gross purchases there is
upward trend in both Indices leaving some exceptions as there are certain other factors like foreign
exchange rate, interest rate, political conditions of the country etc.which affect the indices movement. This
analysis indicates the impact of FIIs on Indices. An FII driven market can impact the real economy
indirectly, when their behavior in the market exerts pressure on policy makers. Secondly, the wealth effect’
where capital gains are translated into increased consumption and investment, 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
that it 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
possibility for money to be made via volatile markets is how short term market players like day traders
hope to make money, and is in contrast to the long term investment view of buy and hold. Foreign
institutional investment is certainly volatile in nature and its volatility has certainly posed some threats to
the Indian stock market considering 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 tendency 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 that whenever there are more purchases as compared to sales than there is
increase in the value of Indices and whenever 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 sample
companies of Midcap & Smallcap Indices but if we take the average of quarterly data of FII shareholding

15
& 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 sample
companies of Midcap & Smallcap Indices, which has increased from 14.513% in Jun 2005 to 25.04% in
Dec- 2007 in Midcap companies and from 11.618% in Jun-2005 to 25.555% in Sep-2007 in Smallcap
companies. 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
instead there are other factors like company specific factors, speculative trading, interest rate prevailing in
the market, political factors, government policies related to specific sectors etc. which cause a significant
change in the prices.

16
 RESULTS

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

 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 is
decline in Midcap & Smallcap Indices. On the other hand if there is an upward trend in FII due to
more gross purchases as compared to selling, Indices rises.

 The high degree of volatility in stock market is due to

1) 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 the
stock price decline and there will be pull out by the FII in a large number as earning per
shares declines.
2) The FIIs manipulate the situation of boom in such a manner that they will wait till the
index rises 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 stock
prices like company specific factors, speculative trading, interest rate prevailing in the market,
political factors, government policies related to specific sectors etc.

17
 CONCLUSION

In the Indian stock market FIIs have a disproportionately high level of influence on the market sentiments
and price trends. Results of the study shows the linkages between the FIIs inflows and the performance of
Midcap & Smallcap Indices are robust and significant.FIIs have significant impact on the share prices of
the Midcap & 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 Institutional
Investment but should keep a check on the volatility factor. Long term funds should be given priority and
encouraged. 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

18
APPENDIX

19
HISTORICAL DATASHEET

20
 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

21
 FII INVESTMENT (Rs. Crore) Midcap Index Smallcap Index Sensex
Gross Gross Sales Net
Month Purchase 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-2005 26455.1 22042.5 4412.6 4064.49 5925.14 7805.43
September-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
35603.1 28031.2 7571.9 10370.2
February-2006 4789.75 6144.48 4
53578.7 47046.4 6532.3 11279.9
March-2006 5348.62 6591.66 6
40415.6 39826.4 589.2 12042.5
April-2006 5843.29 7397.48 6
49338.2 57585.5 -8247.2 10398.6
May-2006 5052.44 6364.29 1
39845.6 38427.4 1418.2 10609.2
June-2006 4381.11 5357.04 5
24983.1 23535.2 1447.9 10743.8
July-2006 4303.28 5131.48 8
28104.6 23330.6 4774 11699.0
August-2006 4798.07 5778.99 5
33014.2 26782.5 6231.7 12454.4
September-2006 5148.38 6161.73 2
October-2006 27591.94 23013.3 4578.54 5396.13 6392.59 12961.9
31146.96 24572.22 6574.74 13696.3
November-2006 5721.6 6647.08 1
37419.5 40830.4 -3410.9 13786.9
December-2006 5805.18 6892.32 1
47506.77 47412.32 94.45 14090.9
January-2007 6045.1 7503.5 2
51568.9 45503.9 6065 12938.0
February-2007 5508.74 6705.91 9
March-2007 50552.6 49149.3 1403.3 5384.12 6470.51 13072.1
44701.5 39269.7 5431.8 13872.3
April-2007 5795.72 6993.84 7
51574.9 47000.4 4574.5 14544.4
May-2007 6222.4 7413.03 6
54748.5 46808.9 7939.6 14650.5
June-2007 6527.03 7730.4 1
80216.2 62083.4 18132.8 15550.9
July-2007 6718.08 8070.63 9
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
124882.3 109304.7 15577.6 19837.9
October-2007 8135.21 9796.86 9
89510 94107.4 -4597.4 19363.1
November-2007 8553.56 10526.02 9
80988.1 76091.4 4896.7 20286.9
December-2007 9789.49 13348.37 9
103129 120455.3 -17326.3 17648.7
January-2008 7766.62 10124.42 1
76437.1 71017.2 5419.9 17578.7
February-2008 7680.39 9628.13 2
70322.7 70198.3 124.4 15644.4
March-2008 6427.82 7841.62 4
April-2008 62969.6 61990.6 979 7138.74 8773.57 17287.3

22
 1
60640.3 65557.6 -4917.3 16415.5
May-2008 6760.54 8133.04 7
June-2008 61490.6 72068.3 -10577.7 5386.48 6701.96 13461.6
64526.3 65539.2 -1012.9 14355.7
July-2008 5567.37 6912.79 5
46401.9 48467.7 -2065.8 14564.5
August-2008 5742.29 6891.64 3
68029.6 75966.6 -7937 12860.4
September-2008 4798.29 5577.47 3
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

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 26.1 807.05
Sep , 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

23
 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 11.85 332.4
Jun , 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 26.43 182.35
Mar , 06 21.32 201.65
Jun , 06 30.46 166.25
Sep , 06 33.16 211.75
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 42.79 204.5
Dec , 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 41.93 546.05
Dec , 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 12.12 895
Sep , 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
24
 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 19.32 624.25
Sep , 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 67.4
Dec , 08 17.43 45.05
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 27.48 114.4
Mar , 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 14.45 669.95
Dec , 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

25
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 9.6 286
Dec , 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

26
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 85.1
Mar , 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 4.95 153.75
Mar , 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 34.34 465.6
Dec , 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

27
 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 76.45
NIIT 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 98
Jun , 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 & Manufacturing
Company Ltd Jun , 05 11.49 336.2
Sep , 05 14.45 383.15
Dec , 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 5.12 371.55
Dec , 08 3.52 193.15
Mar , 09 1.5 167.95
Mahindra Lifespace Developers Ltd Jun , 05 22.29 140.1
28
 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 26.35 555.4
Sep , 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 97.8
Sep , 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 6.5 195.1
Jun , 08 7.56 177.65
Sep , 08 8.02 185.75
Dec , 08 7.61 90.25
Mar , 09 7.58 81

Table-6

29
MIDCAP & SMALLCAP INDICES VS SENSEX

30
 Ap Smallcap Index Midcap Index
r Ap
M il-2

0
r

2000
4000
6000
8000
10000
12000
14000
16000
Ju ay-200 5 M il-2

0
2000
4000
6000
8000
10000
12000

ne 00
- 5 Ju ay- 005
n 20
Se Au July2005 J e-2 05
pte gu -20
m st- 05 Se Au uly- 005
g
pt u 20
e s 0
No Octboer-2 2005 O mb t-2 5
De v em ber-005 No cto er- 00 5
ce be 200 b 2
De vem er- 00 5
Jambe r-20 5 ce be 20
Fe nua r-2 00 5 Ja mb r-2 05
br ry- 05 Fe nu aer-2 005
u 2 br ry 0 0
Maary - 006 u - 5
r 20 M ary 200
ar -2 6
Apch-206
r 0 Ap ch - 006
M il-2006 r 20
Ju ay-2 0 6 M il-2 06
ne 00 Ju ay-2006
- 6 n 0
Se Au July2006 J e-2 06
pte gu -20 Se Au uly - 006
m st- 06 pt gu 2 0
e s 0
No Octboer- 20 06 O mb t-2 6
2 No cto er- 006
De v em ber-006 v b 2
ce be 20 De em er- 00 6
Jambe r-200 06 ce be 20
Fe nua r-2 0 6 Ja mb e r-2 06
br ry 06 Fe nu a r-2 006
u - br ry 00
Maary - 2007 u - 6
rc 20 M ary 200
ar -2 7
Ap h-207
r 0 Ap ch - 00 7
r 20
M il-2 07 M il-2 07
Ju ay-2007 Ju a y- 007
ne 00 n 20
- 7

Midcap Index

M o n th
J e-2 07

Month
Se Au July2007 Se Au uly- 007
pte gu -20
m t- 07s pt gu 2 0
e s 0
No Octboer- 2 20 07 O mb t -2 7

31
No cto er- 007
De vem ber-007 v b 2
M ID CAP Vs SEN SEX

De em er- 00 7

S ensex
ce be 20 0 ce be 20
m

S m a llc a p In d e x S e n s e x

Graph-2
Graph-1
Jambe r-20 7 Ja b r-2 07
Fe nua r-200 7 Fe nu aer- 2 007

SM ALLCAP Vs SEN SEX

br ry- 07 br ry 00
u 2 u - 7
Maary - 008 M ary 20 0
r 20 a r -2 8
Apch-208 Ap ch - 00 8
r 0 r 20
M il-2008 M il-2 08
Ju ay-2 08 Ju ay- 008
ne 00 n 20
- 8 J e-2 08
Se Au July2008 Se Au uly- 008
pte gu -20 pt gu 20
m st- 08 e s 0
O mb t -2 8
No Octboer- 20 08 No cto er- 00 8
2 v 2
De vem ber-008 De ember- 008
ce be 20 ce be 20
m r-
Ja be 20 08 m r
Ja b -2 08
Fe nua r-200 8 Fe nu aer- 2 00 8
br ry 08 br ry 0 0
u - u - 8
Maary- 2009 M ary 20 0
ar -2 9
rch200 ch 00
-209 -20 9
09 09

0
0
5000

5000
10000
15000
20000
25000

10000
15000
20000
25000

Sensex Sensex
FII INVESTMENT VS MIDCAP & SMALLCAP INDICES

32
 Gross Purchase Gross Purchase
Ap Ap
M ril-2 M ril-2
a

0
0

20000
40000
60000
80000
100000
120000
140000
20000
40000
60000
80000
100000
120000
140000

Ju y-2005 Juay-2005
ne 00 n 0
Se Au Jul -20 5 Se Au Jule- 200 5
pt gu y-2 05 pt gu y-2 05
e s 0 e s 0
O m t-2 05 O m t- 0
No ctober 00 No ctober 200 5
-
De vember 20 05 De vember-20 5
ce b -20 5
e
ce b -2 05
Ja mb r-2 05 Jamb e r-2005
Fe nu e r-2 005 Fe nu e r- 00
br a ry 00 br a ry 2 0 5
u u
M ar y -20 5 M ary - 2005
ar -2 06 ar -2 06
c c
Ap h-2 006 Ap h-2006
0
M ril-2 06 M ril-2006
a
Ju y-2006 Juay-2006
ne 00 ne 0
Se Au Jul -20 6 Se Au Jul -200 6
pt gu y-2 06 pt gu y-2 06
e s 0 e s
O m t-2 06 O m t- 00
No ctober 00 No ctober 200 6
v - 6 v
De ember-20 6
De ember 20 0
ce be -20 6 ce b -2 06
m
Ja b r-2 06 J m e r- 006
Fe nu e r- 006 Feanube r- 2 00
br a ry 2 0 br a ry 2 0 6
u - 0 u
M ar y 2006 M ary -2006
ar -2 7 ar -2 07
c c
Ap h-2 007 Ap h-2007
0
M ril-2 07 M ril-2007
a

Gross Purchase
Gross Purchase
Ju y-2007 Juay-2007
ne 00 n 0

Month
Se Au Jul - 20 7 Month Se Au Jule-200 7
pt gu y-2 07
pt gu y-2 07
e s 0 e s
O m t-2 07 O m t- 00

33
No ctober 00 No c tober 200 7
- De vember-20 7
De vember 20 07

Graph-4
ce b - 2 07

Graph-3
ce b -20 7
e J m e r- 007
Ja mb r-2 07
Fe nu e r-2 007 Feanube r- 2 00
br a ry 00 br a ry 2 0 7
u u

FII INVESTM ENT Vs SM ALLCAP

FII INVESTM ENT Vs M IDCAP

M ar y -2007 M ar y -2007

Smallcap Index close

ar -2 8 ar -2 08
c c
M idcap Index close

Ap h-2 008 Ap h-2008

0
M ril-2 08 M ril-2008
a
Ju y-2008 Juay-2008
ne 00 n 0
Se Au Jul - 20 8 Se Au Jule-200 8
pt gu y-2 08 pt gu y-2 08
e s 0 em st 00
O m t-2 08 O -
No ctober 00 No c tober 200 8
v - 8 De vember-20 8
De ember 20 0
ce be -20 8 ce b - 2 08
m r
Ja b -2 08 Jamb e r-2008
Fe nu e r- 008 Fe nu e r- 00
br a ry 2 0 br a ry 2 0 8
u - 0 u
M ar y 2008 M ary - 2008
ar -2 9 ar -2 09
ch 0 ch 0
-2 09 -2 09
00 00
9 9

0
0

2000
4000
6000
8000
2000
4000
6000
8000

10000
12000
14000
16000
10000
12000

Smallcap Index Midcap Index

VOLATILITY ANALYSIS

34
 Gross Purchases & Sales
A
pr
il-

100000
120000
140000

20000
40000
60000
80000

0
M 2 00
ay 5
Ju -20
ne 0 5
-
Ju 200
A ly- 5
S u 2
ep gus 00
te t-2 5
m 0
O ber 0 5
ct -2
N o b 00
ov e 5
e r-
D mb 200
ec e 5
em r-2
0
Ja ber 05
nu -2
Fe a r 005
br y- 2
ua 00
r
M y-2 6
ar 0
ch 06
-
A 20
pr 06
il -
M 2 00
ay 6
Ju -20
ne 0 6
-
Ju 200
A ly- 6
u
Se gu 2 0
pt st 06
em -2
0
O ber 0 6
ct -2
N o b 00
o v er
e - 6
D mb 200
ec e 6
em r-2
b 0
Ja e r 06

Gross
n -2
Fe ua r 006

Purchase
br y- 2
ua 0
r 0
M y-2 7
ar 00
ch 7
-
A 20
pr 07
i l-
M 2 00
ay 7

Month

Sales
Gross
Ju -20
ne 0 7
-
Ju 200

Graph-5
A ly- 7
S ugu 2 0
0
VOLATILITY ANALYSIS

ep
te s t-2 7
m 00
O er 7 b
c -
N to b 20 0
ov e 7
em r- 2
D 0
e c be 07
em r-2
0
Midcap Index

Ja be r 07
nu -2 0
Fe a r 07
br y- 2
ua 0
r 0
M y-2 8
ar 00
ch 8
-
A 20
pr 08
i l-
M 200
ay 8
-
Ju 20
ne 0 8
-
Smallcap Index

Ju 200
A ly- 8
S ugu 2 0
ep 0
te st-2 8
m
O er 8 b 00
c -
N to b 200
ov e
r- 8
e
D mb 200
ec e 8
em r-2
0
Ja ber 08
nu -2
Fe a r 08 0
br y-2
ua 0
r 0
M y-2 9
ar 00
ch 9
-2
00
9
0
2000
4000
6000
8000
10000
12000
14000
16000

Midcap & Smallcap Index

SCRIPWISE IMPACT OF FII SHAREHOLDING ON
PRICE MOVEMENT OF MIDCAP COMPANIES
 Percentage Shareholding Percentage Shareholding
Ju Ju
n n

0
5
10
15
20
25
30
35
40
45
50
10
15
20
25
30
35

0
5
Se , 05 S ,0
p ep 5
De , 05 D ,0
c ec 5
M , 05 M , 05
ar ar
Ju , 0 6 Ju , 0 6
n n
Se , 06 S ,0
ep 6
p
De , 06 D ,0
ec 6
c
M , 06 M , 06
ar ar
,
Ju , 0 7 Ju 0 7
n n
Se , 07 S ,0

% shareholding
ep 7
p

% shareholding
De , 07 D ,0
ec 7
c
Quarter Period
M , 07

Quarter Period

Graph-7
Graph-6
M , 07
JSW STEEL LTD.

ar ar
, Ju , 0 8
Ju 0 8
n n
S ,0
Se , 08 ep 8
p
D ,0
closing price

ec 8

UNITED PHOSPHORUS LTD.

De , 08

closing price
c M , 08
M , 08 ar
ar ,0
,0 9
9
0

0
200
400
600
800
1000
1200
1400

100
200
300
400
500
600
700
800
900

Closing Price Closing Price

 Percentage Shareholding Percentage Shareholding
Ju
n Ju

0
5
10
15
20
25
30
35
40
45
n
10
12
14

0
2
4
6
8
Se , 05 ,
p Se 05
p
De , 05 ,
c De 05
M , 05 c
ar M , 05
ar
Ju , 0 6 ,
n Ju 06
n
Se , 06 ,
p Se 06
De , 06 p
c De , 0 6
c
M , 06 ,
ar M 06
ar
Ju , 0 7 ,
n Ju 07
Se , 07 n,
p Se 07
De , 07 % shareholding p

% shareholding
c De , 07
Quarter Period

Graph-9
Graph-8
M , 07 c,

Quarter Period
ar M 07
ar
Ju , 0 8
n ,
Ju 08
n
Se , 08 ,

FEDERAL BANK LTD.

p Se 08
p
De , 08 ,
closing price

c
COLGATE PALMOLIVE INDIA LTD.

De 08

closing price
M , 08 c
ar M , 08
,0 ar
9 ,0
9

0
0

50
50

100
150
200
250
300
350
400
100
150
200
250
300
350
400
450
500

Closing Price Closing Price

 Percentage Shareholding Percentage Shareholding
Ju Ju
n n

10
15
20
25
30
35
40
45
50

0
5

0
2
4
6
8
10
12
14
16
Se , 05 Se , 05
p p
De , 05 De , 05
c c
M , 05 M , 05
ar ar
, Ju , 0 6
Ju 0 6
n n
Se , 06 Se , 06
p p
De , 06 De , 06
c c
M , 06 M , 06
ar ar
, ,
Ju 0 7 Ju 0 7
n n
Se , 07 Se , 07
p p

% shareholding
De , 07 % shareholding De , 07
c c

Graph-11
Graph-10
Quarter Period

Quarter Period
LUPIN LTD.
M , 07 M , 07
ar ar
,
Ju 0 8 Ju , 0 8
n n
Se , 08 Se , 08
p p
De , 08

closing price
De , 08
closing price

c
JAIN IRRIGATION SYSTEMS LTD.

c
M , 08 M , 08
ar ar
,0 ,0
9 9

0
0

200
400
600
800
100
200
300
400
500
600
700

1000
1200

Closing Price Closing Price

 Percentage Percentage Shareholding
Shareholding Ju
Ju n

0
5
10
15
20
25
30
n

0
5
10
15
20
25
30
35
Se , 05
Se , 05 p
p De , 05
De , 0 c
c 5 M , 05
M , 05 ar
ar
Ju , 0 6
Ju , 0 6
n
n
Se , 06
Se , 0
p 6 p
De , 06 De , 06
c c
M , 06 M , 06
ar ar
Ju , 0 7
Ju , 0 7
n n
Se , 07 Se , 07
p p

% shareholding
% shareholding
De , 0 De , 07
c 7 c

Graph-13
Graph-12
M , 07

Quarter Period
M , 07

VOLTAS LTD.
ar ar
Ju , 0 8 Ju , 0 8
n n
Se , 0 Se , 08
p 8 p
De , 0 De , 08
c 8

closing price
c
Quarter Periodclosing price

M , 08 M , 08
INDIAN HOTELS COM PANY LTD.

ar ar
,0 ,0
9 9

0
0

200
400
600
800
200
400
600
800

1000
1200
1000
1200
1400
1600

Closing Price Closing Price

 Percentage Shareholding Percentage Shareholding
Ju Ju
n n

0
5
10
15
20
25

0
5
10
15
20
25
30
35
Se , 05 Se , 05
p p
De , 05 De , 05
c c
M , 05 M , 05
ar ar
Ju , 0 6 Ju , 0 6
n n
Se , 06 Se , 06
p p
De , 06 De , 06
c c
M , 06 M , 06
ar ar
Ju , 0 7 Ju , 0 7
n n
Se , 07 Se , 07
p p

% shareholding

% shareholding
De , 07 De , 07
c c

Graph-15
Graph-14
M , 07 M , 07
Quarter Period

Quarter Period
ar ar

M PHASIS LTD.
Ju , 0 8
TATA TEA LTD .

Ju , 0 8 n
n
Se , 08 Se , 08
p p
De , 08 De , 08
c c
closing price

closing price
M , 08 M , 08
ar ar
,0 ,0
9 9
0

0
50
100
200
300
400
500
600
700
800
900

100
150
200
250
300
350
1000

Closing Price Closing Price

SCRIPWISE IMPACT OF FII SHAREHOLDING ON
PRICE MOVEMENT OF SMALLCAP COMPANIES
 Ju Percentage Shareholding Percentage Shareholding
n

0
1
2
3
4
5
6
7
8
9
10
Ju
n

0
5
10
15
20
25
30
35
40
45
50
Se , 05
p Se , 05
De , 05 p
c De , 05
M , 05 c
ar M , 05
ar
Ju , 0 6
n Ju , 0 6
Se , 06 n
p Se , 06
De , 06 p
c De , 06
c
M , 06 M , 06
ar
, ar
Ju 0 7 Ju , 0 7
n n
Se , 07 Se , 07
p p
% shareholding

% shareholding
De , 07 De , 07
c c

Graph-17
Graph-16

Quarter Period
M , 07 M , 07
ar ar
Ju , 0 8 ,
Ju 0 8
n n
Se , 08 Se , 08
p p
SOUTH INDIAN BANK LTD.

De , 08 De , 08
c
Quarter Period closing price

closing price
M , 08
KESORAM IN DUSTR IES LTD . M , 08
ar ar
,0 ,0
9 9
0

0
50
100
150
200
250

100
200
300
400
500
600
700

Closing Price Closing Price

 Ju Percentage Shareholding Percentage Shareholding
n Ju

0
2
4
6
8
10
12
n

0
5
10
15
20
25
30
35
40
Se , 05
p Se , 05
p
De , 05
c De , 05
c
M , 05 M , 05
ar ar
Ju , 0 6
n Ju , 0 6
n
Se , 06
p Se , 06
p
De , 06 De , 06
c c
M , 06 M , 06
ar ar
Ju , 0 7 Ju , 0 7
n n
Se , 07 Se , 07
p p
De , 07 De , 07

% s hareholding
c

% s hareholding
c

Graph-19
Graph-18
M , 07

Quarter Period
ar Ma , 07
r
Q uarter P eriod

Ju , 0 8 Ju , 0 8
n n

R AYM ON D LTD .
Se , 08 Se , 08
p p
G AM M O N IN D IA LTD .

De , 08 De , 08
c c

clos ing pric e

c los ing pric e

M , 08 M , 08
ar
ar
,0 ,0
9 9
0

0
100
200
300
400
500
600
700

100
200
300
400
500
600

Closing Price Closing Price

 Percentage Shareholding Percentage Shareholding
Ju Ju
n

0
10
20
30
40
50
60
70
80
n 90
100

0
5
10
15
20
25
30
35
Se , 05 Se , 05
p p
De , 05 De , 05
c c
M , 05 M , 05
ar ar
Ju , 0 6 Ju , 0 6
n n
Se , 06 Se , 06
p p
De , 06 De , 06
c c
M , 06 M , 06
ar ar
Ju , 0 7 Ju , 0 7
n n
Se , 07 Se , 07
p p

% shareholding
% shareholding
De , 07 De , 07
c c

Graph-21
Graph-20
N IIT LTD .

M , 07 M , 07

Quarter Period
Quarter Period

ar ar
Ju , 0 8 Ju , 0 8
n n
Se , 08
p Se , 08
p
De , 08 De , 08
c c

closing price
clos ing price

M , 08 M , 08
ar ar
,0
9 ,0
9
UN ITED BR EWER IES HOLD IN GS LTD .

0
0

200
400
600
800
200
400
600
800

1000
1200
1400
1000
1200

Closing Price Closing Price

 Percentage Shareholding Percentage
Ju
n Ju Shareholding

0
5
10
15
20
25
30
35
n

0
2
4
6
8
10
12
14
16
Se , 05
p Se , 05
p
De , 05
c De , 05
c
M , 05 M , 05
ar ar
Ju , 0 6 Ju , 0 6
n n
Se , 06
p Se , 06
p
De , 06 De , 06
c c
M , 06 M , 06
ar ar
Ju , 0 7 Ju , 0 7
n n
Se , 07 Se , 07
p p
% shareholding

% s hareholding
De , 07 De , 07
c c

Graph-23
Graph-22
M , 07
Quarter Period

M , 07

Quarter Period
ar ar
COM PANY LTD.

Ju , 0 8 Ju , 0 8
n n
Se , 08 Se , 08
p p
De , 08 De , 08
closing price

c c

closing pric e
M , 08 M , 08
ar ar
,0 ,0
9 9
BOM BAY DYEING & M ANUFACTURING

0
0

M AHIN D R A LIFESPACE D EVELOPER S LTD .

100
200
300
400
500
600
700
800
900
100
200
300
400
500
600
700
800
900

1000

Closing Price Closing Price

 Percentage Shareholding Percentage Shareholding
Ju Ju
n

0
2
4
6
8
n
10
12
14

0
1
2
3
4
5
6
7
8
9
Se , 05
Se , 05
p p
De , 05 De , 05
c c
M , 05 M , 05
ar ar
Ju , 0 6 Ju , 0 6
n n
Se , 06 Se , 06
p p
De , 06 De , 06
c c
M , 06 M , 06
ar ar
Ju , 0 7 Ju , 0 7
n n
Se , 07 Se , 07
p p

% shareholding
% s hareholding
De , 07 De , 07
c c

Graph-25
Graph-24
M , 07 M , 07

Quarter Period
Quarter Period

ar ar
Ju , 0 8 Ju , 0 8
n n
Se , 08 Se , 08
p p

RAIN COM M ODITIES LTD.

De , 08 De , 08
c c

closing price
c los ing pric e
TVS M OTOR COM PAN Y LTD .

M , 08 M , 08
ar ar
,0 ,0
9 9

0
0

50
20
40
60
80

100
150
200
250
300
350
100
120
140
160

Closing Price Closing Price

 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 Foreign
Institutional 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