FMCG funds were the best performers last week, technology sector funds lag

Fast moving consumer goods sector funds emerged as the best performers last week with the category delivering 3.62 percent average returns. In comparison, the Nifty FMCG index rose 3.5 percent.

After volatility in high beta stocks, investors preferred investments in defensive sectors like FMCG and pharma stocks.

"Defensive sectors like FMCG were preferred during the correction and they were not hit very badly during that phase," said a fund manager from a bank-sponsored fund house.

Mutual fund experts also said that investors are increasing exposure to defensives as overall market outlook is choppy.

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Himadri Buch

Assistant Editor|Moneycontrol.com

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Last week, equity market plunge on the back of Securities and Exchange Board of India's severe steps against 331 shell companies.

Indices recorded gains during the truncated trading week, with benchmark Sensex rising 311.09 to close at 31,524.68, while the broader Nifty rose 126.60 points to end at 9,837.40.

However, on the last day of trade, the gains were washed away after the surprise resignation of Infosys CEO & MD Vishal Sikka. His resignation dragged its shares down 10 percent at close, also pulling the Nifty 50 and Sensex out of a three-session gaining streak.

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Sikka's exit saw shares of Infosys plunge as much as 13 percent on August 18 to a three-year low, and also eroded the company's market capitalisation by nearly Rs 300 billion.

After hitting a one-month low intraday, the Nifty IT index ended down over 2 percent, even as other constituents such as Tata Consultancy Services, HCL Technologies and Tech Mahindra rose 0.6-1 percent.

Apart from Infosys, weakness in the global market weighed down the local shares. Equities in US, Asia and Europe fell after terror attacks in Spain (Barcelona).

Among the other sectoral funds, infrastructure funds were the second-best performers with the category offering 2.8 percent returns last week.

Information technology-linked funds were worst performers with merely 0.28 percent returns last week.

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