Promoters cash in on market crash, raise stakes by over 1% in 11 BSE500 firms. Take a look!

Spotting an opportunity amid a broad-based selloff in the Indian equity markets, promoters of select firms raised their holdings by over 1% in their companies, making the most of the crash in share prices.

In the September quarter of FY23, prompted by a fall in shares, promoters of 11 BSE500 firms -- Uno Minda, Infosys, Birlasoft, GMM Pfaudler, Bajaj Auto, NCC, Vardhman Textiles, Jindal Steel & Power, Strides Pharma Science, JM Financial and VIP Industries -- raised stakes between 1-3%.

Uno Minda's promoters rose to 70.11% in the September quarter from 67.41% in the June quarter. Meanwhile, the stake of Infosys promoters went up by 2% to 56.68% from 54.53% on a sequential basis. In other companies promoters raised stakes by 1% each.

Nifty50 declined 9.06% in January-June while Sensex lost 8.9%. Shares of select companies saw double-digit cuts during the same period of between 11-33%.


Promoters accumulating their own stocks always gives a good indication as it shows the confidence of promoters in their business models, Kranthi Bathini of Wealth Mills Securities told ETMarkets.

"Promoter buying is perceived as a positive signal for investors. As their stocks are available at cheaper prices, the promoters see this as an opportunity to buy them," Bathini added.

Data suggests that most of these bets made during the September quarter paid off, with many companies offering returns to the tune of up to 57% since the June quarter.


Jindal Steel and Power rallied the most (up 57%) followed by NCC (up 35%). GMM Pfaudler, Vardhman Textiles, JM Financial, Uno Minda and VIP Industries surged between 13-29%. Strides Pharma and Infosys offered single-digit gains while Bajaj Auto was flat during the period.

(Data Inputs: Ritesh Presswala)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)