A sharp drop in pledged promoter holdings was seen in NCL Industries, which fell 40 percent
Pledging by promoters in the April to June quarter fell to Rs 2.38 lakh crore against Rs 2.47 lakh crore in the preceding quarter, according to a report by Edelweiss Securities. Overall, 714 companies reported pledged holdings in Q1 FY19.
A sharp drop in holdings was seen in NCL Industries, which fell 40 percent. Nath Bio-Genes, KPIT Technologies, Elecon Engineering Company and Advanced Enzyme Technologies saw promoter holdings fall 12 percent to 26 percent.
However, there was a sharp increase in holdings in companies such as Emami Paper Mills, which increased 49 percent. Indiabulls Real Estate, Sanghi Industries, Sintex Industries, Rushil Décor and Rolta India saw promoter holding increase 22-34 percent.
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Among companies with market capitalisation of Rs 500 crore and above, 85 firms saw an increase in pledged holdings, against 79 that was seen in Q4 FY18.
“Notable names with promoter pledge holdings in the 90s were Bajaj Hindusthan Sugar (100 percent), Reliance Naval and Engineering (100 percent), CG Power & Industrial Solutions (100 percent), IL&FS Transportation Networks (98.23 percent) and Suzlon Energy (99.39 percent),” Edelweiss Securities said.
Among midcaps, incremental promoter holdings were seen in DB Realty and Adani Transmission.
In the F&O universe, 57 companies reported pledged holdings. “Between Q4 FY18 and Q1 FY19, 22 companies saw incremental pledging activity. These include Dish TV (75.66 percent versus 66.28 percent), Indiabulls Housing Finance (17.94 percent versus 12.48 percent) and Apollo Hospitals (73.60 percent versus 68.47 percent),” analysts at the firm wrote in their report.
The brokerage noted that a slew of regulatory initiatives to curb volatility have helped equities regain their mojo. Some of these include introduction of ASM (additional surveillance measures) framework for stocks, physical settlement in derivatives and tighter margin collection norms in derivatives. ‘These developments should work in the best interest of investors in the future,” it added.