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(I) General Statistics about the market:
Primary Markets: An amount of Rs. 7163 cr. has been raised from the primary markets since May, 2004 through 10 rights and 4 public issues. In the same period last year the number of issues were 4(May, 2003 to August, 2003) and amount was Rs. 1318 cr.
A recent public offer (in August) by Tata Consultancy Services Ltd. (TCS) was for 55,452,600 equity shares. Based on consolidated order book position of BSE and NSE, the issue is 100% subscribed at Rs. 900. Overall the issue has been subscribed 10.31 times at the floor price of Rs. 775. Importantly, the share of retail investor in total subscription was 32.44%.
Secondary markets:
The monthly average level of the Sensex was 5204.65 in May, 2004, falling to a low of 4823.87 in June, 2004. However, it has recovered to 5144.17 in August, 2004 (increase of 6.64%). On May 24, when the new Government came to power, the Sensex was at 5123.23 and on July 8, when the Budget was announced, the level was at 4843.84. As on 31st August’04, the Sensex was at 5192.08 registering a rise of 1.34 % from May, 24 and of 7.19% from July 8. As on September 22, the Sensex closed at 5616.87, representing a rise of 9.64% from May 24 and 15.96 % from July 8.
SENSEX
NIFTY
Remarks
Monthly Average:
May, 2004
June, 2004
5204.65
4823.87
1640.20
1506.12
As on May 24, 2004
5123.23
1608.85
As on July 8, 2004
4843.84
1518.15
Monthly average:
July, 2004
August, 2004
4972.88
5144.17
1568.08
1615.30
As on August 31, 2004
5192.08
1631.75
SENSEX: rise of 1.34 % from May, 24 and of 7.19% from July 8.
NIFTY: rise of 1.42% from May, 24 and 7.48% from July 8.
As on September 17, 2004
As on September 22, 2004
5561.15
5616.87
1733.65
1753.9
SENSEX: Rise of 8.55% from May 24 and 14.81% from July 8.
NIFTY: rise of 8.55% from may, 24 and 14.19% from July 8.
SENSEX: Rise of 9.64% from May 24 and 15.96% from July 8.
NIFTY: rise of 9.02% from may, 24 and 15.53% from July 8.
(II) Trends in Foreign Institutional Investments (FIIs)
Though FII investments during the months on May and June, 2004 were negative with a combined outflow of USD 909.5 mn, they have picked up in the later months, with net FII investments (equity and debt) being USD 546.4 mn. in August, 2004, substantially higher than USD 219.3 in July, 2004. The cumulative investment at the end of August 2004 by the FIIs stands at USD 27084.2 mn.
Table: Monthly Net FII investments.
(In Rs. Cr.)
(in USD mn)
Cumulative
Investment (in UDS mn.)
APR
6719.5
1483.3
27237.3
MAY*
-3463.4
-796.8
26446.1
JUN*
-523.2
-112.7
26333.3
JUL*
996.4
219.3
26552.5
AUG*
2507.6
546.4
27084.2
SEPT* (Till Sept 21, 2004)
2496.9
547.7
27631.9
*Adjusted for reporting date
Number of FIIs registered with SEBI:
Date Registered No of FIIs
April 01, 2004 540
May 25, 2004 552
August 07, 2004 593
August 31, 2004 604
September 20, 2004 606
As seen above, the number of FIIs registered with SEBI increased from 552 in May, 2004 to 606 as on September 20, 2004. During the month of August, 2004, as many as 14 FIIs registered with SEBI. Some of the important FIIs recently registered with SEBI are :
California Public Employees' Retirement System,
United Nations for and on behalf of The United Nations Joint Staff Pension Fund;
Frank Russell Trust Company Commingled Employee Benefit Funds Trust;
Usallianz Variable Insurance Products Trust;
Public School Retirement System of Missouri;
Non-Teacher School Employee Retirement System of Missouri
The total number of Registered FII's stood at 604 as on 31st August, 2004.
III) Recent Developments in the capital markets
(i) Processing Time For Open Offers -The Securities and Exchange Board of India (SEBI) has, in June, 2004, reduced the time period for completion of the open offer process for takeovers from the current 120 days to 90 days.
(iii) Procedure for FII registration: The Securities and Exchange Board of India (SEBI) has reduced, in August, 2004, the time taken to clear the registration process to about a week from the earlier two weeks.
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