Mutual funds pared exposure to auto, cement, metal, FMCG, telecom, sugar, and power stocks in January. Buying was seen in engineering, information technology, banking, and chemical sectors, while stocks were re-aligned in the oil & gas pack.
Funds bought huge chunks of engineering stock KEC Infrastructure, a stock they was sold extensively last month. However, they diluted exposure to auto major TVS Motor.
In terms of value, Torrent Power, ONGC, and ICICI Bank were the top purchases by MFs, while i-Flex Solutions, HCL Technologies, and Jaiprakash Associates topped the sell list.
Among the equity IPOs that listed in January, Tanla Solutions and Lumax Auto Technologies attracted funds. Over 7.2 lakh shares of Tanla Solutions was bought by five of the top 10 MFs. SBI MF was the top investor in Tanla Solutions with over 4 lakh shares purchased. Tata, Kotak, Pru ICICI, and Birla MF also invested in this equity IPO, but HDFC exited it.
| Top shares traded by MFs (based on volume) | |
| Top 5 shares bought | No. of Shares |
| KEC Infrastructures | 15,042,410 |
| Torrent Power | 11,341,536 |
| Hindustan Motors | 5,971,828 |
| Ranbaxy Laboratories | 4,196,936 |
| GNFC | 3,008,210 |
| Top 5 shares sold | No. of Shares |
| TVS Motor Company | 6,802,640 |
| Hindalco Industries | 6,159,339 |
| ITC | 5,494,800 |
| Gujarat Ambuja Cements | 4,086,183 |
| Karnataka Bank | 3,126,649 |
Meanwhile, over 3 lakh shares of Lumax Auto Technologies was purchased by HDFC MF. Other equity IPOs - Cairn India, Pyramid Saimira Theatre, Shree Ashtavinayak Cine Vision, and Autoline Industries that listed in January, however failed to attract funds.
A study of the top ten mutual funds' equity portfolios as on January 31, which are UTI, Prudential ICICI, Reliance, HDFC, Templeton, SBI, Birla SunLife, Tata, StanChart, and Kotak MF reveals that four of the top ten MFs bought engineering stock KEC Infrastructures. SBI and Tata MF were the top buyers in the stock with over 76 lakh and 63 lakh shares bought respectively. Reliance and HDFC MF also invested in it. Among other engineering stocks, Siemens, L&T, Greaves Cotton, and Jyoti Structures were bought extensively.
TVS Motor -
| Top shares traded by MFs (based on value) | |
| Top 5 shares bought | Value (Rs in cr) |
| Torrent Power | 627.24 |
| ONGC | 259.36 |
| ICICI Bank | 193.93 |
| Siemens | 179.73 |
| Ranbaxy Laboratories | 171.49 |
| Top 5 shares sold | Value (Rs in cr) |
| I-Flex Solutions | 439.93 |
| HCL Technologies | 185.33 |
| Jaiprakash Associates | 141.50 |
| Hero Honda Motors | 129.59 |
| Sun TV | 110.41 |
IT stock I-Flex Solutions - the top sell in terms of value was dumped by nine MFs. Pru ICICI MF was the top seller with over 9.7 lakh shares sold. Among other IT stocks, R Systems, Patni, and HCL Infosystems were sold, while Polaris, 3i Infotech, Geometric Software, Wipro, and TCS were among the top buys.
Among other sectors, banking, and chemical sectors witnessed buying. Banking stocks ICICI Bank, IDFC, Federal Bank, IDBI Bank, Syndicate Bank, IDBI, PNB, SBI, and UTI Bank were among the top 50 buys, while Karnataka Bank, Indiabulls, BoB, and Union Bank were sold. Chemical stocks GNFC, IPCL, United Phosphorous, and Savita Chemicals too saw buying interest.
Meanwhile, cement, metal, FMCG, telecom, and sugar stocks weighed heavy on the sell list. Cement stocks GAC, Jaiprakash Associates, Prism Cement, and ACC witnessed selling. Metal pivotals Hindalco, and Tata Steel were sold, and so were FMCG heavyweights ITC, and HLL. Among telecom stocks, Tata Teleservices, Aksh Optifibre, and Bharti Airtel were sold, while Reliance Communications was bought. Sugar stocks Triveni Engineering, Sakthi Sugars, and EID Parry too were sold.
For more on mutual fund investments, log on to www.easymf.com.
