Domestic mutual fund houses seem to have made best of the correction in the Tata Group stocks following the dismissal of Cyrus Mistry by accumulating shares across the group companies in November, according to data from the fund houses.
Mutual funds' holdings in crown jewel TCS, Tata Motors, Tata Power and Tata Steel has risen during the month, according to a report industry research house Morningstar.
However, details for other listed companies like Indian Hotels, Titan, Tata Global Beverages and Tata Teleservices Maharashtra are not available.
Tata Motors, the maker of JLR cars, anticipating a spurt in demand for its latest hatchback Tiago, saw the most buying with over 13.81 million shares bought, which is a rise of 11.33 per cent over the previous month, it said.
This is followed by Tata Power, where investors added 8.36 per cent to their existing holdings and Tata Steel where 8.17 per cent new buying was done.
Barring Tata Power, all the scrips saw an increase in the number of fund houses holding the stock at the end of November, with Tata Motors emerging as the most favourite with 310 fund houses followed by TCS' 226.
In a surprise move, Mistry was ousted as the chairman of Tata Sons on October 24, without giving detailed reasons.
This led to unease among investors, and a sell-off in group company stocks, which led to erosion of value.
The Tatas have begun the lengthy process of dismissing Mistry as the chairman and director on board of publicly-held companies and have already succeeded in TCS, Tata Teleservices and Tata Industries, where they had absolute majority.
The institutional investors are expected to play an important role in similar votes at group companies like Tata Power, IHCL and Tata Motors, where Tatas' holdings are as low as 28 per cent.
Among the 100-odd group companies, the Tatas have called for EGMs in the largest six-TCS, Tata Motors, Tata Steel, Tata Power, Tata Power, Tata Chemicals, Indian Hotels and the unlisted Tata Tele between December 13 and 26 to sack Mistry from the directorship of these companies.
Out of these, the group has already sacked Mistry from TCS and Tata Tele through EGMs earlier this week.
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