Latest news with #NIFTY500
Indian Express
7 days ago
- Business
- Indian Express
‘Majority promoter stake in most firms influences voting outcomes'
Despite an increase in institutional ownership, promoters continue to maintain majority stake in most companies, allowing them to exercise a significant control over voting outcomes in shareholder meetings, according to a report by the Institutional Investor Advisory Services (IiAS), a proxy advisory firm. In the report – Shareholding Meetings Review for 2024, IiAS analysed shareholder meetings for the NIFTY500 companies, with focus on voting behaviours and evolving corporate governance practices. 'Their (promoters) dominant shareholding, combined with consistently high participation in voting, often results in outcomes that favour their interests. Since August 2011, our data shows that only one in every 200 resolutions has been defeated – evidencing the outsized influence of promoter ownership,' IiAS said in a report. The report said that a total of 1,057 shareholder meetings were held, where 4,840 resolutions were put to vote in 2024. Five resolution categories – director appointment, adoption of accounts, remuneration and compensation, dividend distribution and auditor appointments re-appointments – accounted for over 71.4 per cent of all resolutions. During the calendar year 2024, promoters held 51.18 per cent of the equity in NIFTY500 companies and voted 78.69 per cent of their shares. On the other hand, institutional investors owned 26.61 per cent of the equity and cast votes on 79.29 per cent of their eligible shares, with the median voting level at 87.2 per cent. The 'Others' category of shareholders had the lowest equity ownership (22.21 per cent) and the lowest share of votes cast (19.06 per cent). The report said that the promoters' abstentions were primarily in cases where resolutions required a majority-of-minority vote. A majority-of-minority vote is a mechanism in which majority of the minority shareholders are needed to pass a resolution. In this voting mechanism, majority shareholders are excluded from voting. 'When they did vote, promoters almost always supported the resolutions – in the rare 0.1 per cent of instances where they voted against, it was largely due to intra-promoter disputes,' the report said. Institutions generally supported resolutions as well, voting against only 5.44 per cent of their shares. Of the 4,840 resolutions proposed by NIFTY 500 companies, 24 were defeated. This included – director appointments (11 resolutions); employee stock option plans (ESOPs) (six); related party transactions (RPTs) (three); alterations to charter documents (two) and restrictions on board powers (two). ESOPs continue to face the highest investor dissent, followed by remuneration and compensation (of managing and executive directors), restrictions on board powers, director appointments, alterations to charter documents, it said. Dissent on RPTs has declined since these now require a majority-of-minority vote. The report said that regulators have attempted to address the imbalance (dominance of promoters in controlling voting outcomes) by limiting the delegation to the board, with shareholders needing to sign-off on most decisions. To further strengthen shareholder democracy, IiAS has recommended the board adopt – or regulators mandate, a shareholder dissent review mechanism. Under this, if a resolution is approved despite significant shareholder opposition, the board will be required to formally engage with dissenting minority shareholders, understand their concerns, and either explain themselves more clearly, or take appropriate corrective actions. Mandating boards to meaningfully respond to material dissent through a shareholder dissent review mechanism has significant potential to improve transparency and trust, the report said.
Economic Times
13-05-2025
- Business
- Economic Times
Parag Parikh Flexi Cap Fund exits ITC Hotels and increases stake in 8 stocks
Parag Parikh Flexi Cap Fund made changes to its portfolio in April. The fund completely sold its shares in ITC Hotels. Parag Parikh Flexi Cap Fund, the largest flexi cap fund based on assets managed, made a complete exit from ITC Hotels in April by selling 98.99 lakh shares from its portfolio, whereas it increased its stake in eight stocks in the same period. Around 72.49 lakh shares of Coal India were added to the portfolio on a monthly basis, taking the total number of shares to 14.83 crore in April against 14.10 crore shares in March. The fund also added 40.76 lakh shares of ITC in the same Read | Largecap mutual funds gain investor interest, inflows surge by 8% in April The shares of Zydus Lifesciences went up to 1.39 crore in April by increasing 9.32 lakh shares to the portfolio. Around 8.51 lakh shares of Power Grid Corporation of India and 6.40 lakh shares of Mahindra & Mahindra were added to the portfolio in the mentioned period. The largest flexi cap fund added 2.70 lakh shares of Dr. Reddy's Laboratories and 1.44 lakh shares of EID Parry India to its portfolio in the mentioned period. And lastly, it added 3,592 shares of Maruti Suzuki India to its portfolio. The exposure in two stocks was reduced, which included Motilal Oswal Financial Services and IPCA Laboratories. Around 23.27 lakh shares of Motilal Oswal Financial Services and 69,771 shares of IPCA Laboratories were reduced from the portfolio in the mentioned exposure in 16 stocks remained unchanged which included HDFC Bank, Bajaj Holdings & Investment, ICICI Bank, Kotak Mahindra Bank, HCL Technologies, Infosys, Cipla, Indian Energy Exchange, CDSL, Swaraj Engines, Maharashtra Scooters, and Multi Commodity Exchange of new stock was added to the portfolio in the said period. The fund had 26 stocks in its portfolio in April against 27 stocks in Parikh Flexi Cap Fund (PPFCF) is an open-ended equity-oriented scheme with flexibility to invest a minimum of 65% in Indian equities and up to 35% in overseas equity security and domestic debt/money market securities. The core portfolio consists of equity investments made with a long-term outlook, and the factors considered while investing are quality of management, quality of the sector, and the business (return on capital, entry barriers, capital intensity, use of debt, growth prospects, etc) and the valuation of the companies. Also Read | Staying invested and patient pays off for 'Dumber' investors against timing market: Radhika Gupta Launched on May 24, 2013, the scheme is managed by Rajeev Thakkar, Raunak Onkar, Raj Mehta, Rukun Tarachandani, and Mansi Kariya. The scheme had an AUM of Rs 98,541.28 crore as on April 30, is benchmarked against NIFTY 500 (TRI) and the minimum investment amount for new purchase, additional purchase, and monthly SIP is Rs 1, fund house said, 'We continue to look at individual investments on their own merits and will not hesitate to invest if an opportunity looks attractive. As usual, our investment stance does not depend much on the macro-economic situation but is focused on individual companies. We have about 26.30% in cash holdings, debt & money market instruments and arbitrage positions which can be deployed in long-term investments at appropriate levels.'
Mint
11-05-2025
- Business
- Mint
Stocks to buy for short term: LGT Wealth's Lokapriya recommends Defence, Hospital, Fin Serv stocks amid Ind-Pak tensions
Recent high-frequency indicators present a detailed view of the economy, showing an overall improvement in activity compared to the previous quarter. Rural demand has shown more significant signs of recovery, driven by increased sales of two-wheelers and tractors, which are essential indicators of rural consumption and agricultural sentiment. In contrast, with limited discretionary spending, urban consumption has remained relatively subdued. On the supply side, the manufacturing sector has demonstrated mixed performance. While the manufacturing Purchasing Managers' Index (PMI) improved compared to the previous quarter, industrial production growth has moderated. However, construction activity has gained momentum, with steady improvement in related indicators over the past five months. With the backdrop of a recovering economy and an early-stage corporate earnings cycle, the Indian market is trading at roughly 20x one year forward, which is below the 5-year mean. This demonstrates no froth in valuations, setting the stage for an upside to Indian markets, barring significant geopolitical tensions. Overall, the current macro environment, supported by capital expenditures and consumption, limits downside risks to earnings, reinforcing an overweight stance on equities over bonds. Investors should view market dips as opportunities to align with long-term asset allocation goals, preferring large-cap stocks for favorable valuations and a greater margin of safety. Consensus estimates for FY25 and FY26 have been revised downward by about 2%, creating a low bar favoring a favorable beat-to-miss ratio in the NIFTY500. While sectors like IT, FMCG, and financial services have seen the most misses, aggregate profit after tax (PAT) growth has returned to positive territory with a 4% increase. The NIFTYNEXT50, however, has shown a stronger year-on-year growth of 23% for Q4 FY25. Company guidance during this earnings season has led to slightly higher earnings growth expectations for FY26-27, especially in cyclical sectors like cement, energy, and real estate. Conversely, large-cap IT and FMCG EPS growth will likely be weaker than consensus expectations. In light of the current war-like situation on the India-Pakistan border, we highlight that if Kargil is a reference point, continued volatile news flow of claims from both countries will keep the market volatile. During the Kargil skirmish, India's markets fell 7 to 9% during the War. On evidence that India was winning and the War was ending, markets were up 15 to 18% in the following month. With that background, defense, hospital, and financial services companies present short-term opportunities while being fundamentally strong sectors. The economy is on track for the growth that the RBI and the Indian government agencies have targeted. The services sector grew strongly in the fourth quarter of FY25, supported by substantial increases in GST collections, e-way bills, toll receipts, and port cargo volumes. Robust domestic demand, proactive monetary and fiscal policies, and a stable external environment foster a favorable climate for sustained investment flows. With a stable Indian economy and the uncertainty of the India-Pakistan conflict, the RBI is likely to stay on course with two additional rate cuts of 50 basis points for the remainder of 2025 unless there is a marked rise in border conflict. The author, Chakri Lokapriya, is the CIO Equities of LGT Wealth India. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making investment decisions.
Time of India
29-04-2025
- Business
- Time of India
Consistent outperformers: 31 equity mutual funds beat their benchmarks in 3, 5, and 7 years
Around 31 equity mutual funds have outperformed their respective benchmarks in the last three, five, and seven years. ETMutualFunds analysed the performance of 164 equity mutual funds that have completed seven years of existence in the market. Tired of too many ads? Remove Ads ELSS funds Tired of too many ads? Remove Ads Flexi cap funds Large cap funds Around 31 equity mutual funds have outperformed their respective benchmarks in the last three, five, and seven years. ETMutualFunds analysed the performance of 164 equity mutual funds that have completed seven years of existence in the were around six ELSS funds in the list, followed by five flexi cap funds, and four large cap funds. The list had three contra funds, focused funds, large undefined each and only one small cap fund made it to the Read | Gold & mutual funds: Which one is right for your portfolio now? We considered all equity mutual funds, excluding multi cap funds, as the data for the benchmark was not available for the ELSS have managed to outperform their respective benchmarks in the last three, five, and seven years. DSP ELSS Tax Saver Fund, Franklin India ELSS Tax Saver Fund, and HDFC ELSS Tax Saver, which are benchmarked against NIFTY 500 - TRI have managed to outperform the benchmark in the mentioned time periods. SBI Long Term Equity Fund , the oldest ELSS fund, managed to outperform its respective benchmark in the said time flexi-cap funds have managed to outperform their respective benchmarks in the last three, five, and seven years. Franklin India Flexi Cap Fund, HDFC Flexi Cap Fund have managed to outperform their respective benchmarks in the said time Parikh Flexi Cap Fund, the largest flexi cap fund based on assets managed, featured in the list of outperformers across horizons. Quant Flexi Cap Fund outperformed against its benchmark in the three different horizons Read | 19 gold ETFs, one glittering choice: Here's how to pick the best one There were four large cap funds that managed to beat their respective benchmarks in the said time periods. Out of these four funds, three are benchmarked against NIFTY 100 - TRI, and the other one is benchmarked against BSE 100 - Pru Focused Equity Fund gave 21.75%, 28.73%, and 17% returns against 15.22%, 25.12%, and 14.31% in the last three, five, and seven years, respectively.4321`Also Read | Global MFs recover post Tariff lows. How long will momentum sustain?Large & mid cap funds
