Tata Steel - the most favoured.
Our Bureau
New Delhi, Dec. 10
Small investors have been shifting in large numbers to steel stocks while the
BSE Sensex has been sliding.
The total number of shareholders in the six main steel manufacturing companies
had increased from 24.97 lakh on June 30 this year to 26.52 lakh on September
30 (see table).
During this period the Sensex had declined from 12,961 on June 30 to 9,044.51
on September 30.
According to senior brokers, the increasing interest of small shareholders in
the other big steel companies could be to some extent an outcome of the
strategy recommended by several market intermediaries to their clients.
"These stocks have become attractive and the figures indicate that retail
investors want to re-enter these stocks. Even we are advising our clients to
buy into large companies, particularly the Nifty companies, because those are
the ones we think will move first," said the former President of the Delhi
Stock Exchange, Mr Vijay Bhushan.
The largest private sector steel manufacturer, Tata Steel, had been the
favourite among investors in a falling market. The number of small shareholders
(holding nominal share capital of up to Rs 1 lakh) in the company jumped from
6,46,884 to 7,47,047 during the July-September period. The number of domestic
corporate bodies holding stake in the company also went up from 6,128 to 7,132
in the same period.
Ispat Industries, that has the largest shareholder base among all domestic
steel companies, saw small shareholders number increase from 8,14,932 to
8,41,330 during July-September though a handful of corporate shareholders
preferred to exit the company, bringing their number down from 3,561 to 3,542
in the same period.
The only steel company where the trend was opposite turns out to be Essar
Steel. The number of retail shareholders in the company has plunged from
4,14,372 to 4,04,885, though corporate interest in the company has increased
from 2,768 to 2,830.
This is because Essar Steel was delisted following an open offer by the company
and is not traded. The existing shareholders can exit only by selling their
shares to the company as the stock has turned illiquid, brokers pointed out.
http://www.thehindubusinessline.com/2008/12/11/stories/2008121151771000.htm
I keep six honest serving-men (They taught me all I knew); Their names are
What, Why, When, How, Where and Who.
-- Rudyard Kipling
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