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HSBC leads India's FII league
By agencies
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Tuesday, 06 December 2005, 20:30 IST
MUMBAI: Based on market capitalization, HSBC, Morgan Stanley, Merrill Lynch, Goldman Sachs and CLSA, in that order, are the top five FIIs in India, a newspaper said.
Investments made by FIIs during the current year were not available, as Sebi does not make this information public. Some of these FIIs are even larger than domestic mutual funds, the Economic Times said.
The m-cap of HSBCs current investment in India stands at around $3.1 billion, followed by Morgan Stanleys $2.4 billion. Merrill Lynch is third at $2.3 billion, Goldman follows at $2.2 billion, while CLSA is fifth at $2.1billion. These rankings are based on FII holdings of 1 percent and above in individual companies, the paper said.
The top five FIIs contribute around 25 percent of the total m-cap of FIIs operating in India, while the top 10 FIIs account for nearly 45 percent of the total FII m-cap. The combined ownership of FIIs in BSE500 companies in India (including holdings of under 1percent) is estimated at around $60 billion as on September 05, which amounts to nearly 35percent of the BSE500 free float.
The FII m-cap has appreciated 24percent between June and September 05, outperforming the sensex by nearly 500 basis points during that period. The FII m-cap amounts to 9percent of the GDP currently, an all-time high. The GDP stands at $692billion based on World Bank figures for calendar year 04.
FIIs registered under different names were clubbed under the larger names. For instance, Merrill Lynch Capital Markets and Merrill Lynch Espana were clubbed under Merrill Lynch
According to Sebi regulations, it is mandatory for companies to disclose holdings 1 percent and above. Hence, FIIs holding less than 1 percent in any company could not be accounted for in the calculations. The m-cap of FIIs holding 1 percent and above in individual companies added up to $40 billion for September 05.
However, Sebi sources said investments worth less than 1 percent in BSE500 companies will have an additional m-cap of $20 billion. Hence, we arrive at a total sum of $60billion. Sebi sources said these investments of less than 1 percent may not change the rankings of individual FIIs.
BSE500 companies were studied as these companies account for nearly 92 percent of the total m-cap and 98 percent of FIIs m-cap, the paper said.