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What's hot, what's not with mutual funds?

Published on Tue, Nov 07, 2006 at 19:56 | Source : Moneycontrol.com

Updated at Tue, Nov 14, 2006 at 14:21

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Mutual funds continued to buy steel, construction, oil and gas, and engineering stocks in October. They also invested in power, and FMCG pivotals. Selling was seen in media, cement, and banking stocks, while stocks were re-aligned in the telecom, auto and IT sectors. Funds bought huge chunks of engineering stock KEC Infrastructures, while diluted exposure to cement pivotal India Cements. (View - All Bulk Deals by Mutual Funds)

Equity IPOs Global Vectra Helicorp, Gwalior Chemical Industries, Development Credit Bank, Gayatri Projects, Hanung Toys and Textiles, and FIEM Industries attracted mutual funds in October with Global Vectra being the most popular one. In terms of value, ITC, Siemens, and HPCL were the top purchases by MFs, while GE Shipping Company, SBI, and Grasim topped the sell list.

Top shares traded by MFs (based on volume)
Top 5 shares bought	No. of Shares
KEC Infrastructures	10,777,447
ITC	9,655,542
Hindustan Lever	6,290,774
Ashok Leyland	5,055,091
Centurion Bank of Punjab	4,728,112
Top 5 shares sold	No. of Shares
India Cements	5,812,764
Syndicate Bank	5,756,679
Gujarat Ambuja Cements	5,442,243
GE Shipping Company	4,781,820
IDFC	4,579,470

A study of the top ten mutual funds' equity portfolios as on October 31, which are UTI, Prudential ICICI, Reliance, HDFC, Templeton, SBI, Birla SunLife, Tata, Standard Chartered, and DSP ML MF reveals that three out of the ten MFs added to their investments in KEC Infrastructures. SBI and Tata MF were the top buyers of the stock with over 47 lakh and 41 lakh shares bought respectively. Among other engineering stocks, Siemens, HEG, Alstom Projects, Cummins, and L&T were bought, while Crompton Greaves, Carborundum Universal, and Praj Industries were among the top sells.

FMCG heavyweight ITC, the second top buy in terms of volume, was bought by six MFs. ITC was also the top value buy in October. Pru ICICI MF was the top buyer of the stock with over 71.7 lakh shares bought, while Reliance, SBI, Tata, and Stanchart MF pared exposure to the stock. Among other FMCG pivotals, almost 63 lakh shares of Hindustan Lever was bought.

India Cements - the top sell was sold by seven MFs. Templeton MF with over 31 lakh shares sold was the top seller of the stock. Among other cement stocks, Gujarat Ambuja Cement, and ACC were sold, while Mysore Cements was among the top buys.

Top shares traded by MFs (based on value)
Top 5 shares bought	Value (Rs in cr)
ITC	183.31
Siemens	151.57
HPCL	148.41
Hindustan Lever	146.95
Apollo Tyres	98.99
Top 5 shares sold	Value (Rs in cr)
GE Shipping Company	160.72
State Bank of India	142.30
Grasim Industries	128.64
India Cements	124.77
Associated Cement Co	121.71

GE Shipping - the top value sell was dumped by Templeton MF, while Pru ICICI, Birla and Tata MF pared exposure to it. However, UTI, DSP ML amd HDFC added to their investments in the stock. Among other shipping stocks, Shipping Corporation was among the top buys.

Among the IPOs that listed in October, Global Vectra was the most popular one with a total of over 10.8 lakh shares bought by three of the top 10 MFs, followed by Gwalior Chemical with 10 lakh and Development Credit Bank with 9.1 lakh shares bought. HDFC MF was the top investor in Global Vectra with over 6.8 lakh shares purchased. Pru ICICI MF was the sole investor in the Gwalior Chemical IPO, while SBI was the top investor in Development Credit Bank with over 4 lakh shares purchased.

Gayatri Projects with 4.8 lakh shares, Hanung Toys and Textiles with 3.2 lakh shares, and FIEM Industries with 1.2 lakh shares bought were other equity IPOs that attracted mutual funds. Meanwhile, Usher Agro, Richa Knits, JHS Svendgaard Labs, and Accel Frontline IPOs failed to attract MFs.

Among other sectors, steel, power, construction and oil and gas stocks witnessed buying. Steel majors Sail, and Tata Steel were bought extensively. Also, construction stocks Jaiprakash Associates, Nagarjuna Construction, Gayatri Projects, and IVRCL Infrastructure were among the top purchases. Power pivotals NTPC, Tata Power, and oil and gas stocks HPCL, BPCL, and Deep Industries were also bought

Meanwhile, media, and banking stocks weighed heavy on the sell list. Media stocks NDTV, TV Today, Zee, and Sun TV were sold. Banking stocks Syndicate Bank, IDFC, Oriental Bank, Union Bank, BoB, PNB, SBI, Allahabad Bank, and IDBI were among the top sells, while Centurion Bank, Vijaya Bank, and Indian Overseas Bank were bought.

by Reena Prince