GAIL, PNB, IREDA among PSU stocks that mutual funds exited before election results

Mutual funds sold shares in several PSU stocks in May ahead of the June 4 outcome with GAIL (India), Punjab National Bank (PNB), Power Finance Corporation (PFC), NHPC and Indian Renewable Energy Development Agency (IREDA) witnessing complete exit by individual mutual funds.

Quant MF exited GAIL and PNB while Mirae MF off-loaded Power Finance Corporation (PFC) and NHPC. Meanwhile, DSP Mutual Fund exited power sector NBFC IREDA.

SBI Small Cap Fund which held 1.82% stake in LIC Housing as on March 31, 2024, completely exited the stock, according to a Nuvama report. LIC Housing is not a pure play PSU stock as the promoter Life Insurance Corporation of India (LIC) has 45.24% stake in the company.



Among top reductions in the month gone by were Hindustan Aeronautics Limited (HAL), State Bank of India (SBI) and BEML where HDFC MF partially sold its stake according to the Nuvamam report.

While the quarterly shareholding filing for the April-June quarter will come in July, HDFC MF held 3.13% in HAL as on March 31, 2024. In SBI, HDFC MF's stake stood at 1.75 at the end of March quarter.

Nippon India MF’s top reductions in May were HAL and GAIL while DSP MF pared stake in state-run power company REC. Mirae MF booked profits in SBI.



The exit or partial selling could be on account of stellar rally in most of these stocks not just in 2024 but over a 1-year period as well.

HDFC MF sold HAL shares worth Rs 1,937 crore, SBI shares worth Rs 1,146 crore and NHPC shares worth Rs 552 crore. DSP MF sold REC shares worth Rs 283 crore.

Also Read: Suzlon Energy, PB Fintech, NHPC among 19 midcap additions by mutual funds in May

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