Thursday, March 8, 2012

Sintex Accumulated by Morgan Stanley on Correction, for Rs. 14.85 Crore

Rahul Patel,
Managing Director,
Sintex Industries Ltd.

By Special Correspondent:

Sintex Industries Ltd (BSE: 502742, NSE: SINTEX) was accumulated by the leading FII, Morgan Stanley Asia (Singapore) Pte, when it bought 18.47 lakh shares on Tuesday, which comes up to around 0.68% of the equity base of Sintex.

Earlier, on February 3rd, StockExplain had reported that two FIIs, AshmoreEMM and Morgan Stanley, had bought significant stakes in Sintex. Post these buys, at Rs. 90.90 and Rs. 92.49, Sintex had rallied till Rs. 104.60, but soon gave up all the gains.

StockExplain had also reported on Sintex more recently,  on February 24th, when Macquarie Bank sold a 0.67% stake for Rs. 16.42 crore, which was at Rs. 89.81 a share. Post this sell, Sintex had slid till Rs. 76.15, where it again found significant support. 

Tuesday’s second buy by Morgan Stanley, executed in NSE, was at Rs. 80.39 a share, and is worth Rs. 14.85 crore. As was the case with the earlier buy by it, as well as AshmoreEMM, as well as the Macquarie Bank sell, there were no identifiable counterparties,  which means that the wider market is participating and is being impacted.

It will be interesting to watch the further direction of Sintex Industries, which has been witnessing significant FII activity – more buys and some sells – in 2012, which started off with a buy of 0.68% stake at Rs. 73.46 by Goldman Sachs in mid January.

Despite all these buys, Sintex has not been able to hold on to the gains for long, which means that there are eager but silent institutional sellers as well, which may be revealed only when the Share Holding Pattern for Q4 is published.

Sintex has high institutional participation, with major stakes held by Sloane Robinson, Reliance Capital Trustee Company, Merrill Lynch, ICICI Prudential Life Insurance, BNY Mellon, LIC of India, Government of Singapore, Reliance Life Insurance, Bajaj Holdings & Investments, India Capital Fund, and Aviva Life Insurance.

On Wednesday, Sintex closed at Rs. 78.50, down by 0.44%. Thursday is a holiday for the Indian market to celebrate Holi, and it reopens on Friday for this week’s last trading day.

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