Foreign institutional investors (FIIs) have reduced their exposure in 20 Sensex companies including, Tata Steel and ITC, during April-June quarter as they recast their portfolio on account of global cues and taxation issues. Of the 30 Sensex companies, FIIs trimmed stake in 20 stocks while they raised their ownership in remaining 10 firms, an analysis of data available with BSE showed.
A slew of global and domestic factors including concerns about slow revival in corporate earnings, taxation issues, uncertainty over Greece's debt crisis and better returns from Asian peers have prompted FIIs to reduce their holdings, market experts noted. Moreover, foreign investors poured a mere Rs547 crore in Indian capital markets during April-June quarter, after pumping in a whooping Rs79,000 crore in the preceding three months.