The divestment process progressing at a snail's pace has turned foreign institutional investors and domestic mutual funds sellers of public sector undertaking stocks during the October-December quarter.

The aggregate holding of mutual funds in 23 listed PSUs declined to 3.29 per cent on December 31, 2002, from 3.36 per cent on September 30, 2002.

Foreign institutional investors, too, offloaded their stake in these companies from 1.94 per cent to 1.80 per cent during the period.

However, banks and financial institutions preferred to raise their stake in PSUs marginally from 3.23 per cent to 3.38 per cent on hopes that the government may sell its stake in the companies by the end of fiscal 2002-2003.

The Hindustan Petroleum Corporation Ltd and Bharat Petroleum Corporation Ltd shares witnessed active trading during the period.

The holding of foreign institutional investors in BPCL dipped to 10.06 per cent, while their stake in HPCL was down marginally from 11.44 per cent in September to 11.05 per cent in December.

They sold 6.42 million BPCL shares and around 1.32 million shares of HPCL.

The holding of mutual funds in BPCL was down to 8.70 per cent in December from 8.93 per cent in September.

Banks and financial institutions, which hold a 6.18 per cent stake in BPCL, increased their stake in the company to 7.27 per cent in December.

Out of the 23 PSUs, mutual funds cut their holdings in eleven firms, while their stake remained unchanged in nine in December.

The funds were also sellers in Kochi Refineries, National Aluminum, HPCL, IBP and Indian Oil Corporation.

However, the funds turned buyers in Bharat Electronics, Engineers India and GAIL.

Foreign institutional investors' holding in Bharat Heavy Electricals Ltd declined to 12.84 per cent in December from 14.74 per cent in September 2002.