While FIIs are increasing their shareholding in Infosys, domestic institutional investors including LIC, are reducing their stake in the country's second largest IT company
State-run Life Insurance Corporation of India (LIC) sold 0.46% of its stake in Infosys Ltd for about Rs850 crore to cut its shareholding to 3.25% in the IT company during the March quarter. Taking into account the current market value of Infosys shares, the 0.4% decline in LIC's holding in the company would be worth overt Rs850 crore.
LIC, the country's largest insurer is also the biggest institutional investor in Indian markets. During the December 2013 quarter, it held 3.71% stake in Infosys.
As per data from BSE, the insurer has been reducing its stake from the IT company. As on June 2012, LIC had 6.72% stake in Infosys which was reduced by 3.47% to 3.25% as on March 2014.
LIC appears to have sold shares at a time when foreign institutional investors (FII) were increasing their stake in Infosys. FIIs hiked their stake in Infosys to 42.10% in the January-March quarter from 40.65% in the preceding three months.
However, domestic institutional investors (DII) reduced their exposure in Infosys to 13.66% in January-March quarter of 2014 from 15.35% in the preceding quarter.
Infosys, which is scheduled to report its fourth quarter earnings tomorrow, is expecting a sluggish growth in revenue during the quarter.
Infosys co-founder NR Narayana Murthy was brought back to head the IT major in June last year, following quarters of laggard performance.
Meanwhile, the company shares have underperformed the broader market by declining nearly 6% compared to 5.7% surge in the BSE's benchmark Sensex during the March quarter.
Infosys closed Friday marginally higher at Rs3,235.85 on the BSE, while the 30-share Sensex ended the day marginally down at 22,628.
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