FIIs' interest in airlines declines

New Delhi : Even as a debate is on over allowing foreign airlines to buy stake in Indian carriers, foreign institutional investors (FIIs) are pulling out their investments from the country’s listed airline companies. FIIs, though, are still evincing fair amount of interest in sectors like oil & gas and automobile firms.
According to Bombay Stock Exchange (BSE) data, all the three listed carriers — Jet Airways, Kingfisher Airlines and SpiceJet — have seen a decline in the FII stake during this July-September, compared to the previous (April-June) quarter of the current financial year.
Mumbai-based Jet Airways, which is India’s largest carrier in terms of passenger carriage, has seen a decline in FII stake from 5.77 per cent in the first quarter of this financial year to 4.67 per cent in the second quarter. As for Kingfisher, the UB Group subsidiary has also witnessed a less than one percentage point decline from 3.02 per cent to 2.11 per cent during the same period.
In the case of Sun Group-owned SpiceJet, the fall is huge because of an increase in equity base after allotment of 35.90 million shares to the promoter of the company. The FII stake in the company fell from 10.16 per cent in the first quarter of this fiscal to 6.17 per cent in the second quarter.
On the other hand, Indian Oil Corporation and Hindustan Petroleum Corporation have seen a marginal decline in FII stake — .07 and .09 per cent, respectively. Oil and Natural Gas Corporation has also seen an increase — by .33 per cent.
In the automobile sector, Bajaj Auto saw a marginal decline of .13 per cent, while Hero Motorcorp saw a rise of 1.13 per cent during the same period.
07/11/11 Mihir Mishra/Business Standard

To Read the News in full at Source, Click the Headline

Categories: Foreign Nov 2011, Indian Aviation- In General Nov 2011