Promoters stacking up their holding

In September,Opelina Finance & Investment Company,one of the promoter entities of Jindal Steel and Power,bought 12.1 lakh shares of the company from the market to take its holding in Jindal Steel and Power from 8.08 to 8.21 per cent,according to data for BSE 100 companies.

Naveen Jindal also increased his stake from 0.22 per cent to 0.29 per cent,buying 6.7 lakh shares from the market.

Avantha Holdings,the promoter company of Crompton Greaves bought 48.15 lakh shares of the company from the market to take its holding from 39.15 per cent to 39.9 per cent.

Similarly,Bharti Telecom purchased 15.25 lakh shares of Bharti Airtel in 11 transactions in the month of September increasing its stake from 45.49 to 45.53 per cent.

Earlier in August,Tata Sons purchased over 15 lakh shares in Tata Motors and Tata Steel from the market and partly from Tata Chemicals in September to take up their holding in the group companies.

These actions by promoters only strengthens the fact that the long-term fundamentals for the companies and the economy remain strong and they remain optimistic about their companys performance. This is in line with market experts,who have been advising investors that the current fall in market should be taken as an opportunity to consolidate holdings in good stocks available at attractive valuations.

Purchase of shares from the market shows that the promoter sees value in the long term, said Pankaj Pandey,head of research at ICICIdirect.

Other that several examples of stock purchase by promoters from the market,Zee Entertainment saw its promoter company Essel Business increase its holding by 2.37 percentage point by way of transfer of shares among promoter entities.

Similarly,in Suzlon Energy,Tanti Holdings increased its stake in the company by 9.72 percentage points after an inter se transfer between promoter entities.