Funds cashing in on sharp fall in most large, midcaps
A fall of more than 11% in the Sensex in September has compelled fund managers to rejig their portfolios. 52 Week: High, Low | Gainers | Losers I Sectoral gainers
By Rajesh Naidu, ET Online |
MUMBAI: A fall of more than 11 per cent in the Sensex in September has compelled fund managers to rejig their portfolios. In regard to equity funds, companies like Essar Oil, JSL Industries, Kingfisher Airlines, Madras Aluminium, Power Trading Corporation, Redington India, and Walchandnagar Industries saw inclusion.
The midcap funds saw an inclusion of companies like ABB, Gas Authority Of India, HCL Technologies, Indiabulls Real Estate, Madras Aluminium, Mundra Port & SEZ, Nestle India, New Delhi Television, Nu Tek India Ltd, Sun Pharma Advance Research Co, Tata Steel, United Spirits, Vijaya Bank, Visaka Industries, and Wipro.
Companies that saw an exit of equity funds were Nirma, Whirlpool of India and GEI Hamon Industries.
In regard to midcap funds, the companies which saw an exit were Arvind Mills, Escorts, HCL Infosystems, India Glycols, IFCI, Kirloskar Oil Engines, Nagarjuna Fertilizers, Panacea Biotec, Sesa Goa, Siemens, Polaris Software Lab, I-Flex Solutions, Info Edge (India), Alphageo (India), Akruti Nirman, Cairn India, Spice Communications, and Arshiya International.
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Major companies that would form a chunk of composition of equity funds and also to some extent midcap funds are ICICI Bank, Oil & Natural Gas Corpn , Bharat Petroleum Corporation, Tata Steel, Sterlite Industries (India) , JaiPrakash Associates, United Phosphorus, Reliance Infrastructure, Punj Lloyd,Hindustan Unilever, Rural Electrification Corp, Sintex Industries, Cipla, Kirloskar Electric Company, Gas Authority Of India, Balrampur Chini Mills Great Offshore, Cairn India, HPCL and Biocon. Says Rahul Amritlal, a research analyst with a CFP, "The companies that have become part of equity funds suggest that fund managers are employing cash to a greater extent and cashing in on the sharp fall in most large caps and midcaps." He says that the composition also reflects that valuations are emerging to be attractive amd investors need to cherry-pick.
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