New Delhi: The Government of Malaysia has introduced visa-on-arrival facility for visiting Indian tourists. This announcement came in conjunction with the Visit Malaysia Year 2014 and the Year of Festivals 2015. This facility is applicable to Indians travelling to Malaysia from a third country — Singapore or Thailand — holding a valid visa for the respective countries and having confirmed return tickets to India.
In a statement, Manoharan Periasamy, Director, Tourism Malaysia, said, “Destinations with ease of visa issuance are popular, and the choice of a holiday destination is most often decided on the factor of ease of visa approval. Malaysia has always been a popular destination among Indians and with the reintroduction of VoA, we hope to see more and more Indians considering Malaysia even as a short break destination for long weekends and last-minute travel plans. In fact, this relaxation in visa restrictions is mainly for families and groups travelling to Malaysia on a vacation and for businessmen.”
Visiting Indian tourists can avail visa-on-arrival at all major airports of Malaysia, namely, Kuala Lumpur International Airport (KLIA), Low cost Terminal LCCT (KLIA), Penang International Airport, Sultan Ismail International Airport, Johor Bahru, Kota Kinabalu International Airport, Sabah and Kuching International Airport, Sarawak, at a fee of $100.
Success in my Habit
Thursday, January 9, 2014
Hyderabad to get Rs 100 cr footwear design centre
Hyderabad: Hyderabad is all set to get yet another national centre soon. It will get an Rs 100-crore National Institute for Footwear Design and Development.
The foundation stone for the Institute will be laid in the last week of January. The Andhra Pradesh Government has already allocated the required land at Gachibowli in Cyberabad. A couple of weeks ago the Union Minister for small, micro and medium enterprises, K.H. Muniyappa, had announced that it would set up a National SME University. About 100 acres of land was available for the facility to come up in the city.
The foundation laying event for the Footwear Design Institute was finalised during the meeting of Union Minister for Commerce and Industry, Anand Sharma and State Chief Minister, N. Kiran Kumar Reddy on Friday here.
Funds for the national centre have already been sanctioned by the Commerce Ministry.
The Union Minister advised to complete the process of identifying partner for the setting up of Rs 35-crore World Trade Centre under PPP mode.
Rs 20 crore will be given by Government and the balance should be borne by the State, a release from the Chief Minister’s Office stated.
The Union Minister informed the Chief Minister that China has come forward and expressed interest to partner in one of the proposed National Investment and Manufacturing Zones (NIMZ), for both technical and investment purposes. The Centre sanctioned three NIMZs to the State at Zaheerabad, Medak district, Chittoor and Prakasam districts. Each of these are expected to attract Rs 30,000 crores of investment and generate employment for 3 lakh people, the release said.
The foundation stone for the Institute will be laid in the last week of January. The Andhra Pradesh Government has already allocated the required land at Gachibowli in Cyberabad. A couple of weeks ago the Union Minister for small, micro and medium enterprises, K.H. Muniyappa, had announced that it would set up a National SME University. About 100 acres of land was available for the facility to come up in the city.
The foundation laying event for the Footwear Design Institute was finalised during the meeting of Union Minister for Commerce and Industry, Anand Sharma and State Chief Minister, N. Kiran Kumar Reddy on Friday here.
Funds for the national centre have already been sanctioned by the Commerce Ministry.
The Union Minister advised to complete the process of identifying partner for the setting up of Rs 35-crore World Trade Centre under PPP mode.
Rs 20 crore will be given by Government and the balance should be borne by the State, a release from the Chief Minister’s Office stated.
The Union Minister informed the Chief Minister that China has come forward and expressed interest to partner in one of the proposed National Investment and Manufacturing Zones (NIMZ), for both technical and investment purposes. The Centre sanctioned three NIMZs to the State at Zaheerabad, Medak district, Chittoor and Prakasam districts. Each of these are expected to attract Rs 30,000 crores of investment and generate employment for 3 lakh people, the release said.
Hyderabad to get Rs 100 cr footwear design centre
Hyderabad: Hyderabad is all set to get yet another national centre soon. It will get an Rs 100-crore National Institute for Footwear Design and Development.
The foundation stone for the Institute will be laid in the last week of January. The Andhra Pradesh Government has already allocated the required land at Gachibowli in Cyberabad. A couple of weeks ago the Union Minister for small, micro and medium enterprises, K.H. Muniyappa, had announced that it would set up a National SME University. About 100 acres of land was available for the facility to come up in the city.
The foundation laying event for the Footwear Design Institute was finalised during the meeting of Union Minister for Commerce and Industry, Anand Sharma and State Chief Minister, N. Kiran Kumar Reddy on Friday here.
Funds for the national centre have already been sanctioned by the Commerce Ministry.
The Union Minister advised to complete the process of identifying partner for the setting up of Rs 35-crore World Trade Centre under PPP mode.
Rs 20 crore will be given by Government and the balance should be borne by the State, a release from the Chief Minister’s Office stated.
The Union Minister informed the Chief Minister that China has come forward and expressed interest to partner in one of the proposed National Investment and Manufacturing Zones (NIMZ), for both technical and investment purposes. The Centre sanctioned three NIMZs to the State at Zaheerabad, Medak district, Chittoor and Prakasam districts. Each of these are expected to attract Rs 30,000 crores of investment and generate employment for 3 lakh people, the release said.
The foundation stone for the Institute will be laid in the last week of January. The Andhra Pradesh Government has already allocated the required land at Gachibowli in Cyberabad. A couple of weeks ago the Union Minister for small, micro and medium enterprises, K.H. Muniyappa, had announced that it would set up a National SME University. About 100 acres of land was available for the facility to come up in the city.
The foundation laying event for the Footwear Design Institute was finalised during the meeting of Union Minister for Commerce and Industry, Anand Sharma and State Chief Minister, N. Kiran Kumar Reddy on Friday here.
Funds for the national centre have already been sanctioned by the Commerce Ministry.
The Union Minister advised to complete the process of identifying partner for the setting up of Rs 35-crore World Trade Centre under PPP mode.
Rs 20 crore will be given by Government and the balance should be borne by the State, a release from the Chief Minister’s Office stated.
The Union Minister informed the Chief Minister that China has come forward and expressed interest to partner in one of the proposed National Investment and Manufacturing Zones (NIMZ), for both technical and investment purposes. The Centre sanctioned three NIMZs to the State at Zaheerabad, Medak district, Chittoor and Prakasam districts. Each of these are expected to attract Rs 30,000 crores of investment and generate employment for 3 lakh people, the release said.
Hyderabad to get Rs 100-cr footwear design centre
Hyderabad: Hyderabad is all set to get yet another national centre soon. It will get an Rs 100-crore National Institute for Footwear Design and Development.
The foundation stone for the Institute will be laid in the last week of January. The Andhra Pradesh Government has already allocated the required land at Gachibowli in Cyberabad. A couple of weeks ago the Union Minister for small, micro and medium enterprises, K.H. Muniyappa, had announced that it would set up a National SME University. About 100 acres of land was available for the facility to come up in the city.
The foundation laying event for the Footwear Design Institute was finalised during the meeting of Union Minister for Commerce and Industry, Anand Sharma and State Chief Minister, N. Kiran Kumar Reddy on Friday here.
Funds for the national centre have already been sanctioned by the Commerce Ministry.
The Union Minister advised to complete the process of identifying partner for the setting up of Rs 35-crore World Trade Centre under PPP mode.
Rs 20 crore will be given by Government and the balance should be borne by the State, a release from the Chief Minister’s Office stated.
The Union Minister informed the Chief Minister that China has come forward and expressed interest to partner in one of the proposed National Investment and Manufacturing Zones (NIMZ), for both technical and investment purposes. The Centre sanctioned three NIMZs to the State at Zaheerabad, Medak district, Chittoor and Prakasam districts. Each of these are expected to attract Rs 30,000 crores of investment and generate employment for 3 lakh people, the release said.
The foundation stone for the Institute will be laid in the last week of January. The Andhra Pradesh Government has already allocated the required land at Gachibowli in Cyberabad. A couple of weeks ago the Union Minister for small, micro and medium enterprises, K.H. Muniyappa, had announced that it would set up a National SME University. About 100 acres of land was available for the facility to come up in the city.
The foundation laying event for the Footwear Design Institute was finalised during the meeting of Union Minister for Commerce and Industry, Anand Sharma and State Chief Minister, N. Kiran Kumar Reddy on Friday here.
Funds for the national centre have already been sanctioned by the Commerce Ministry.
The Union Minister advised to complete the process of identifying partner for the setting up of Rs 35-crore World Trade Centre under PPP mode.
Rs 20 crore will be given by Government and the balance should be borne by the State, a release from the Chief Minister’s Office stated.
The Union Minister informed the Chief Minister that China has come forward and expressed interest to partner in one of the proposed National Investment and Manufacturing Zones (NIMZ), for both technical and investment purposes. The Centre sanctioned three NIMZs to the State at Zaheerabad, Medak district, Chittoor and Prakasam districts. Each of these are expected to attract Rs 30,000 crores of investment and generate employment for 3 lakh people, the release said.
Hyderabad to get Rs 100-cr footwear design centre
Hyderabad: Hyderabad is all set to get yet another national centre soon. It will get an Rs 100-crore National Institute for Footwear Design and Development.
The foundation stone for the Institute will be laid in the last week of January. The Andhra Pradesh Government has already allocated the required land at Gachibowli in Cyberabad. A couple of weeks ago the Union Minister for small, micro and medium enterprises, K.H. Muniyappa, had announced that it would set up a National SME University. About 100 acres of land was available for the facility to come up in the city.
The foundation laying event for the Footwear Design Institute was finalised during the meeting of Union Minister for Commerce and Industry, Anand Sharma and State Chief Minister, N. Kiran Kumar Reddy on Friday here.
Funds for the national centre have already been sanctioned by the Commerce Ministry.
The Union Minister advised to complete the process of identifying partner for the setting up of Rs 35-crore World Trade Centre under PPP mode.
Rs 20 crore will be given by Government and the balance should be borne by the State, a release from the Chief Minister’s Office stated.
The Union Minister informed the Chief Minister that China has come forward and expressed interest to partner in one of the proposed National Investment and Manufacturing Zones (NIMZ), for both technical and investment purposes. The Centre sanctioned three NIMZs to the State at Zaheerabad, Medak district, Chittoor and Prakasam districts. Each of these are expected to attract Rs 30,000 crores of investment and generate employment for 3 lakh people, the release said.
The foundation stone for the Institute will be laid in the last week of January. The Andhra Pradesh Government has already allocated the required land at Gachibowli in Cyberabad. A couple of weeks ago the Union Minister for small, micro and medium enterprises, K.H. Muniyappa, had announced that it would set up a National SME University. About 100 acres of land was available for the facility to come up in the city.
The foundation laying event for the Footwear Design Institute was finalised during the meeting of Union Minister for Commerce and Industry, Anand Sharma and State Chief Minister, N. Kiran Kumar Reddy on Friday here.
Funds for the national centre have already been sanctioned by the Commerce Ministry.
The Union Minister advised to complete the process of identifying partner for the setting up of Rs 35-crore World Trade Centre under PPP mode.
Rs 20 crore will be given by Government and the balance should be borne by the State, a release from the Chief Minister’s Office stated.
The Union Minister informed the Chief Minister that China has come forward and expressed interest to partner in one of the proposed National Investment and Manufacturing Zones (NIMZ), for both technical and investment purposes. The Centre sanctioned three NIMZs to the State at Zaheerabad, Medak district, Chittoor and Prakasam districts. Each of these are expected to attract Rs 30,000 crores of investment and generate employment for 3 lakh people, the release said.
Hyderabad to get Rs 100-cr footwear design centre
Hyderabad: Hyderabad is all set to get yet another national centre soon. It will get an Rs 100-crore National Institute for Footwear Design and Development.
The foundation stone for the Institute will be laid in the last week of January. The Andhra Pradesh Government has already allocated the required land at Gachibowli in Cyberabad. A couple of weeks ago the Union Minister for small, micro and medium enterprises, K.H. Muniyappa, had announced that it would set up a National SME University. About 100 acres of land was available for the facility to come up in the city.
The foundation laying event for the Footwear Design Institute was finalised during the meeting of Union Minister for Commerce and Industry, Anand Sharma and State Chief Minister, N. Kiran Kumar Reddy on Friday here.
Funds for the national centre have already been sanctioned by the Commerce Ministry.
The Union Minister advised to complete the process of identifying partner for the setting up of Rs 35-crore World Trade Centre under PPP mode.
Rs 20 crore will be given by Government and the balance should be borne by the State, a release from the Chief Minister’s Office stated.
The Union Minister informed the Chief Minister that China has come forward and expressed interest to partner in one of the proposed National Investment and Manufacturing Zones (NIMZ), for both technical and investment purposes. The Centre sanctioned three NIMZs to the State at Zaheerabad, Medak district, Chittoor and Prakasam districts. Each of these are expected to attract Rs 30,000 crores of investment and generate employment for 3 lakh people, the release said.
The foundation stone for the Institute will be laid in the last week of January. The Andhra Pradesh Government has already allocated the required land at Gachibowli in Cyberabad. A couple of weeks ago the Union Minister for small, micro and medium enterprises, K.H. Muniyappa, had announced that it would set up a National SME University. About 100 acres of land was available for the facility to come up in the city.
The foundation laying event for the Footwear Design Institute was finalised during the meeting of Union Minister for Commerce and Industry, Anand Sharma and State Chief Minister, N. Kiran Kumar Reddy on Friday here.
Funds for the national centre have already been sanctioned by the Commerce Ministry.
The Union Minister advised to complete the process of identifying partner for the setting up of Rs 35-crore World Trade Centre under PPP mode.
Rs 20 crore will be given by Government and the balance should be borne by the State, a release from the Chief Minister’s Office stated.
The Union Minister informed the Chief Minister that China has come forward and expressed interest to partner in one of the proposed National Investment and Manufacturing Zones (NIMZ), for both technical and investment purposes. The Centre sanctioned three NIMZs to the State at Zaheerabad, Medak district, Chittoor and Prakasam districts. Each of these are expected to attract Rs 30,000 crores of investment and generate employment for 3 lakh people, the release said.
TCS to set up world’s largest training centre in Kerala
Centre can train upto 50,000 professionals annually
Mumbai: Tata Consultancy Services (TCS), India’s largest software services exporter, on Saturday said it would set up the world’s largest corporate learning and development centre, with a capacity to train 15,000 professionals at one time and 50,000 professionals annually.
The proposed TCS Learning Campus in Thiruvananthapuram will come up on a 97-acre plot in the Technopark area of the city. To be built over 6.1 million square feet, it will include residences for professionals and faculty.
N Chandrasekaran, chief executive officer and managing director, said, "TCS has been present in Thiruvananthapuram since 1997 and since then it has been the hub of our global learning and development efforts. The TCS Learning Campus will be the new benchmark for corporate learning worldwide and this iconic facility will produce world class professionals to meet the future needs of the information technology (IT) industry."
During the construction period of four years, the project is expected to provide direct jobs to around 2,000 locals. An integral part of the project will be skill development programmes run by TCS for the local youth.
TCS is one of the largest private sector employers in India, with around 285,000 professionals worldwide, and plans to hire 50,000 in 2013-14. It spends around 15 million hours on learning and development programmes for its employees every year. Over the past five years till date, the company has trained 143,000 IT professionals in India and abroad.
Mumbai: Tata Consultancy Services (TCS), India’s largest software services exporter, on Saturday said it would set up the world’s largest corporate learning and development centre, with a capacity to train 15,000 professionals at one time and 50,000 professionals annually.
The proposed TCS Learning Campus in Thiruvananthapuram will come up on a 97-acre plot in the Technopark area of the city. To be built over 6.1 million square feet, it will include residences for professionals and faculty.
N Chandrasekaran, chief executive officer and managing director, said, "TCS has been present in Thiruvananthapuram since 1997 and since then it has been the hub of our global learning and development efforts. The TCS Learning Campus will be the new benchmark for corporate learning worldwide and this iconic facility will produce world class professionals to meet the future needs of the information technology (IT) industry."
During the construction period of four years, the project is expected to provide direct jobs to around 2,000 locals. An integral part of the project will be skill development programmes run by TCS for the local youth.
TCS is one of the largest private sector employers in India, with around 285,000 professionals worldwide, and plans to hire 50,000 in 2013-14. It spends around 15 million hours on learning and development programmes for its employees every year. Over the past five years till date, the company has trained 143,000 IT professionals in India and abroad.
TCS to set up world’s largest training centre in Kerala
Centre can train upto 50,000 professionals annually
Mumbai: Tata Consultancy Services (TCS), India’s largest software services exporter, on Saturday said it would set up the world’s largest corporate learning and development centre, with a capacity to train 15,000 professionals at one time and 50,000 professionals annually.
The proposed TCS Learning Campus in Thiruvananthapuram will come up on a 97-acre plot in the Technopark area of the city. To be built over 6.1 million square feet, it will include residences for professionals and faculty.
N Chandrasekaran, chief executive officer and managing director, said, "TCS has been present in Thiruvananthapuram since 1997 and since then it has been the hub of our global learning and development efforts. The TCS Learning Campus will be the new benchmark for corporate learning worldwide and this iconic facility will produce world class professionals to meet the future needs of the information technology (IT) industry."
During the construction period of four years, the project is expected to provide direct jobs to around 2,000 locals. An integral part of the project will be skill development programmes run by TCS for the local youth.
TCS is one of the largest private sector employers in India, with around 285,000 professionals worldwide, and plans to hire 50,000 in 2013-14. It spends around 15 million hours on learning and development programmes for its employees every year. Over the past five years till date, the company has trained 143,000 IT professionals in India and abroad.
Cashew body targets to double biz with Saudi Arabia
Kochi: The Cashew Export Promotion Council’s hopes have been rekindled after its participation in the Jeddah International Trade Fair recently.
The council is hopeful of doubling cashew business with Saudi Arabia.
With adequate follow up, the quantum of exports to Saudi Arabia could be increased from the current 5,862 tonnes a year valued at Rs 231.34 crore, said T.K. Shahal Hassan Musaliar, Chairman of the council.
According to him, the council’s participation in the 25 {+t} {+h} fair has helped to create awareness about Indian cashews among prospective consumers.
The fair attracted businessmen from across the Kingdom and neighbouring Gulf States.
Musaliar also attended a meeting at the Indian Consulate office and discussed various trade issues relating to cashew.
Saudi Arabia is a fastest growing economy in West Asia with potential better than other countries in the region. Exports of cashew kernels from India to the UAE last year were 13,625 tonnes valued at Rs 550.18 crore. With a view to generating interest and educate the advantages of consuming the nuts, he said cashew kernels plain and flavoured were offered as samples to visitors.
The quality and crispness of Indian cashew drew appreciation in general at the stall.
There were also increasing enquiries, especially from buyers of bulk, on the availability of quality and different grades of cashews, he said. Brochure in Arabic and English with general/nutrition information and the council’s promotional shopping bags carrying the message “zero cholesterol” were distributed at the venue.
In addition to the council’s stall, 11 cashew exporting firms also participated in the fair.
The council is hopeful of doubling cashew business with Saudi Arabia.
With adequate follow up, the quantum of exports to Saudi Arabia could be increased from the current 5,862 tonnes a year valued at Rs 231.34 crore, said T.K. Shahal Hassan Musaliar, Chairman of the council.
According to him, the council’s participation in the 25 {+t} {+h} fair has helped to create awareness about Indian cashews among prospective consumers.
The fair attracted businessmen from across the Kingdom and neighbouring Gulf States.
Musaliar also attended a meeting at the Indian Consulate office and discussed various trade issues relating to cashew.
Saudi Arabia is a fastest growing economy in West Asia with potential better than other countries in the region. Exports of cashew kernels from India to the UAE last year were 13,625 tonnes valued at Rs 550.18 crore. With a view to generating interest and educate the advantages of consuming the nuts, he said cashew kernels plain and flavoured were offered as samples to visitors.
The quality and crispness of Indian cashew drew appreciation in general at the stall.
There were also increasing enquiries, especially from buyers of bulk, on the availability of quality and different grades of cashews, he said. Brochure in Arabic and English with general/nutrition information and the council’s promotional shopping bags carrying the message “zero cholesterol” were distributed at the venue.
In addition to the council’s stall, 11 cashew exporting firms also participated in the fair.
Foreign investors pump in nearly Rs 4 lakh crores in four years ended December 2013
Mumbai: The numbers are staggering by any yardstick. In one of the most aggressive buying sprees since liberalisation, foreign investors pumped in nearly Rs 3,71,342 crore into Indian stocks in the four years ended December 2013. This is more than the combined investment in the nine years beginning 2001, and dwarfs all that was invested in the boom years of 2005-08.
That the investment was made in the backdrop of sliding economic growth and falling corporate profits is surprising and can be attributed to global factors such as Fed Reserve's easing programme and prospects of a change at the Centre after the May 2014 general elections. The stock indices, bereft of any other trigger, rose to life highs in a dramatic Uturn in November just months after growth slipped to a decade low and the rupee had followed suit, sinking to a life low. This dollar tsunami didn't just lift indices.
It has also resulted in the highest ever ownership by foreign institutional investors (FIIs) in Indian stocks. The aggregate holding of offshore funds in benchmark Nifty companies was 18.12 per cent in the September quarter versus 17.86 per cent in June, and 18.08 per cent in the March quarter.
FII stakes in companies such as Axis Bank, M&M, HCL Technologies, Tata Power Company, NTPC, Wipro and Sun Pharma hit a record high in the September quarter. Some marketmen worry that a fast-rising FII ownership may not be that good for Indian markets as the funds could soon run out of stocks to buy. In the past four years (with the exception of 2011), foreign institutional investors have invested about $20 billion every year.
If FIIs maintain their pace of investments, they would pump in about $100 billion in five years and buy out large chunks of the stocks that they own today. "If foreigners want to buy each and every stock that they own today, out of what is remaining in their foreign investment quota, they can only pump in another $100 billion. (Then) There will be no stock available for them in the markets," says Sunil Singhania, head (equities), Reliance Capital Asset Management. This is not an implausible scenario.
Foreign investors pump in nearly Rs 4 lakh crores into Indian stocks in four years ended December 2013
FIIs own substantial stakes in some of the country's biggest blue chips, such as Infosys (about 55 per cent), HDFC (73 per cent) and ICICI Bank (67 per cent). The headroom for further investments has already shrunk and may become zero in the coming weeks and months if they buy more.
In TCS and ITC, the FII ownership is close to the ceiling and further purchases may not be possible. Tempting though it may be for those who resent FII domination of the market, the scenario is unlikely to come to pass. In the next year or so, companies and the markets are going to adjust themselves to this rising trend of FII ownership.
The objective will be to facilitate further FII purchases, not restrict them. Here are four things that are likely to happen, and what it means for the markets and investors: First, wherever possible, companies are likely to increase the ceiling for FII purchases. This especially applies to cases where there is a divergence between the government policy of higher foreign direct investment and an FII ceiling that has remained unchanged for several years. Companies may have let status quo remain for a number of reasons. One could be that they are waiting for the right opportunity and time. Now that FII holding is approaching the danger mark, and demand for stocks is increasing, expect managements to be more proactive. Second, promoters of some of India's leading companies will use this opportunity to sell some of their stake.
This will broaden ownership and allow foreign and domestic funds to buy more shares of the companies. In both TCS and Wipro, promoter holding is more than 70 per cent. The absence of free float means lack of buying opportunities for both FIIs and domestic funds.
If Tata Sons and the holding companies owned by Azim Premji sell some of their stakes, investors and the stock prices of both the companies will reap the benefits. Don't forget that much of the rally in IT and consumer goods stocks in the past one year has been driven by heavy FII buying. "Currently, FIIs can directly invest up to 24 per cent in Indian companies. But in many sectors the ceiling is much higher. I am sure when there will be demand for paper, companies will seek shareholders' approval and raise FII limits," said UR Bhat, MD, Dalton Capital Advisors. Third, a number of quality stocks beyond the top 100 on the BSE and NSE are likely to come into play even if FII limits are increased. Experts believe that many good stocks can be found in the broader market and this can be an opportunity to test FIIs' stock-picking skills.
"There are many good-quality midcap companies worth investing in. Currently, liquidity may be an issue. But that will improve once FIIs start investing. Till about 2000, FIIs used to invest in less than top 50 companies, now they are investing in over 100 companies. As the economy grows, institutional participation also gets wider," said Saurabh Mukherjea, CEO (institutional equities) at Ambit Capital.Fourth, scarcity of good-quality stocks will provide an opportunity for highquality, unlisted companies to go for IPOs. Insurance companies have been allowed by the regulator to float their shares, but market conditions and the financials of many companies may be deterring them from taking this step.
"I think Indian markets are poised for rerating by foreign investors. What is required is confidence in the markets, which is only possible by strong government reforms, and then we might see even PSU stocks getting FII attention. Some of the expected IPOs from insurance companies, asset management companies, exchanges, etc, may also find FII attention," said Deven Choksey, MD and CEO, KR Choksey Shares and Securities. A number of private, unlisted companies are doing very well, but ownership in them is restricted.
If and when the economy improves, the appetite among FIIs is likely to force promoters, and in some cases private equity investors, to look to the market for raising money or securing an exit. Some of the big Indian IPOs are probably just waiting in the wings for things to turn around.
That the investment was made in the backdrop of sliding economic growth and falling corporate profits is surprising and can be attributed to global factors such as Fed Reserve's easing programme and prospects of a change at the Centre after the May 2014 general elections. The stock indices, bereft of any other trigger, rose to life highs in a dramatic Uturn in November just months after growth slipped to a decade low and the rupee had followed suit, sinking to a life low. This dollar tsunami didn't just lift indices.
It has also resulted in the highest ever ownership by foreign institutional investors (FIIs) in Indian stocks. The aggregate holding of offshore funds in benchmark Nifty companies was 18.12 per cent in the September quarter versus 17.86 per cent in June, and 18.08 per cent in the March quarter.
FII stakes in companies such as Axis Bank, M&M, HCL Technologies, Tata Power Company, NTPC, Wipro and Sun Pharma hit a record high in the September quarter. Some marketmen worry that a fast-rising FII ownership may not be that good for Indian markets as the funds could soon run out of stocks to buy. In the past four years (with the exception of 2011), foreign institutional investors have invested about $20 billion every year.
If FIIs maintain their pace of investments, they would pump in about $100 billion in five years and buy out large chunks of the stocks that they own today. "If foreigners want to buy each and every stock that they own today, out of what is remaining in their foreign investment quota, they can only pump in another $100 billion. (Then) There will be no stock available for them in the markets," says Sunil Singhania, head (equities), Reliance Capital Asset Management. This is not an implausible scenario.
Foreign investors pump in nearly Rs 4 lakh crores into Indian stocks in four years ended December 2013
FIIs own substantial stakes in some of the country's biggest blue chips, such as Infosys (about 55 per cent), HDFC (73 per cent) and ICICI Bank (67 per cent). The headroom for further investments has already shrunk and may become zero in the coming weeks and months if they buy more.
In TCS and ITC, the FII ownership is close to the ceiling and further purchases may not be possible. Tempting though it may be for those who resent FII domination of the market, the scenario is unlikely to come to pass. In the next year or so, companies and the markets are going to adjust themselves to this rising trend of FII ownership.
The objective will be to facilitate further FII purchases, not restrict them. Here are four things that are likely to happen, and what it means for the markets and investors: First, wherever possible, companies are likely to increase the ceiling for FII purchases. This especially applies to cases where there is a divergence between the government policy of higher foreign direct investment and an FII ceiling that has remained unchanged for several years. Companies may have let status quo remain for a number of reasons. One could be that they are waiting for the right opportunity and time. Now that FII holding is approaching the danger mark, and demand for stocks is increasing, expect managements to be more proactive. Second, promoters of some of India's leading companies will use this opportunity to sell some of their stake.
This will broaden ownership and allow foreign and domestic funds to buy more shares of the companies. In both TCS and Wipro, promoter holding is more than 70 per cent. The absence of free float means lack of buying opportunities for both FIIs and domestic funds.
If Tata Sons and the holding companies owned by Azim Premji sell some of their stakes, investors and the stock prices of both the companies will reap the benefits. Don't forget that much of the rally in IT and consumer goods stocks in the past one year has been driven by heavy FII buying. "Currently, FIIs can directly invest up to 24 per cent in Indian companies. But in many sectors the ceiling is much higher. I am sure when there will be demand for paper, companies will seek shareholders' approval and raise FII limits," said UR Bhat, MD, Dalton Capital Advisors. Third, a number of quality stocks beyond the top 100 on the BSE and NSE are likely to come into play even if FII limits are increased. Experts believe that many good stocks can be found in the broader market and this can be an opportunity to test FIIs' stock-picking skills.
"There are many good-quality midcap companies worth investing in. Currently, liquidity may be an issue. But that will improve once FIIs start investing. Till about 2000, FIIs used to invest in less than top 50 companies, now they are investing in over 100 companies. As the economy grows, institutional participation also gets wider," said Saurabh Mukherjea, CEO (institutional equities) at Ambit Capital.Fourth, scarcity of good-quality stocks will provide an opportunity for highquality, unlisted companies to go for IPOs. Insurance companies have been allowed by the regulator to float their shares, but market conditions and the financials of many companies may be deterring them from taking this step.
"I think Indian markets are poised for rerating by foreign investors. What is required is confidence in the markets, which is only possible by strong government reforms, and then we might see even PSU stocks getting FII attention. Some of the expected IPOs from insurance companies, asset management companies, exchanges, etc, may also find FII attention," said Deven Choksey, MD and CEO, KR Choksey Shares and Securities. A number of private, unlisted companies are doing very well, but ownership in them is restricted.
If and when the economy improves, the appetite among FIIs is likely to force promoters, and in some cases private equity investors, to look to the market for raising money or securing an exit. Some of the big Indian IPOs are probably just waiting in the wings for things to turn around.
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