Foreign institutional investors have pared their holding in Larsen & Toubro by almost 3 per cent.

The company is in the news at present over the fate of its cement business, with the management differing with Grasim Industries on the issue.

Grasim's holding in L&T as on December 2002 stands at 14.15 per cent against 14 per cent in September. Financial institutions have increased their stake in L&T marginally.

FIIs held around 6.35 per cent in the company. They reduced their collective holding to 3.71 per cent, down 2.63 per cent.

Total shareholding of institutional investors, including FIIs, declined 0.76 per cent over the last three months.

Market players feel that L&T shares offloaded by FIIs were lapped up by domestic financial institutions led by insurance companies.

Life Insurance Corporation of India has increased its stake by 1.18 per cent to 18.6 per cent.

General Insurance Corporation bought 0.35 per cent, while New India upped its equity holding by 0.1 per cent to 2.6 per cent. United India raised its holding in L&T by 0.02 per cent to 1.07.

Oriental Insurance and National Insurance held their stake unchanged at 1.42 per cent and 1.02 per cent, respectively.

Unit Trust of India marginally enhanced its stake to 10.36 per cent from 10.34 per cent in September 2002. Private corporate bodies increased their stake in L&T by almost 2 per cent.