Fund Managers pick cement, power, niche growth plays

The benchmark Nifty 50 crossing the 25,000 mark and the unabated flows into equity mutual funds turned fund managers cautious in July. They stuck to large-cap stocks and sectors with reasonable valuations and growth visibility. Infrastructure, cement and power were the themes that fund managers favoured during the month.

Consolidation in the cement sector with recent acquisitions and strategic deals has led to a re-rating. Fund managers believe that large players would gain pricing power. Their top buys in the sector included ACC, Ambuja Cements and Shree Cement. Given the power defi cit of 2 GW at the end of the June quarter, some fund managers found value in Tata Power, a company with mature assets and stable cash fl ows. Niche stocks, among the top three players in their respective industries with a strong growth runway, also found their way into the buy lists. These included Carborundum Universal, Carysil, Shakti Pumps, Sonata Software, Delhivery and Restaurants Brand Asia.