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SBI Offloaded In Heaps

Stocks that were bought & sold by funds in Feb

The increasing concerns of the deteriorating economic data on the domestic front along with the deepening financial crisis on the global front led to the precipitation of almost all of the major indices in February 2009. BSE Realty (-15.28 per cent) and BSE Bankex (-13.47 per cent) turned out to be the month’s worst performers.

However, towards the end of the month, the excise duty cut did ease the markets with BSE Auto rising by 7.29 per cent. Overall, it was the only index to generate positive returns in February, a month in which BSE Sensex fell by 5.65 per cent, BSE Mid Cap by 6.23 per cent and BSE Small Cap by 6.98 per cent.

On the whole, the funds’ equity assets were spread across 767 stocks, out of which, the top 10 stocks accounted for 33.19 per cent. Large-caps predictably dominated the portfolios with an asset allocation of 60 per cent. The preferred sectors during the month were construction, diversified, technology and healthcare while the financial sector lost preference the most.

SBI earned the dubious distinction of being the most offloaded stock, with shares worth Rs. 469 crores being sold off. Reliance Vision, ICICI Prudential Infrastructure and Franklin India Flexi-Cap were the top sellers of this stock. However, SBI Mutual Fund bought the shares of SBI for its schemes like Magnum Taxgain, SBI Bluechip and Magnum Equity.

The second most sold stock was Bharat Heavy Electricals with the total sell-off amounting to Rs 155 crores. Fund Houses like HDFC, ICICI Prudential and UTI were the prominent sellers of the stocks for their schemes like HDFC Top 200, HDFC Growth, ICICI Prudential Infrastructure, UTI Opportunities and UTI Leadership.

Despite the rate cut that led to the rise in the auto index, Maruti Suzuki was the third most sold stock. Reliance, HDFC and SBI were the biggest seller of the stock and the schemes in these fund houses that offloaded the stock mainly include HDFC Equity, Reliance Equity Opportunities, Reliance Equity, Magnum Contra and Magnum Taxgain. There were two prominent takers of the stocks - DSP Black Rock and Sundaram for their schemes like DSPBR Top 100 Equity, DSPBR Equity, Sundaram BNP Paribas Select Focus and DSPBR Balanced.

On the buying front, large-caps took the lead as well. The most bought stock of the month was Housing Development Finance Corporation with buying of Rs 162 crores. Franklin Templeton, ICICI Prudential and UTI were the biggest buyers of the stock for their schemes like Franklin India Flexicap, Franklin India High Growth Companies, ICICI Prudential Equity and Derivative Wealth Optimizer, ICICI Prudential Balanced, UTI Wealth Builder Series II, UTI Master Growth and UTI Index Select Equity, to name a few.

Reliance Industries was the second most bought stock of the month, with purchases worth Rs 125.72 crores. Reliance Mutual fund was the biggest buyer of the stock and shopped the stock worth Rs 37 crore. UTI, Franklin Templeton and Sundaram were amongst the other prominent buyers of the stock. The schemes that included the stock from the stable of above mentioned fund houses were Reliance Tax Saver, Franklin India Prima Plus, Sundaram BNP Paribas Tax Saver and UTI Spread.

L&T was the third most bought stock of the month with purchases of Rs 114.6 crore. Franklin Templeton, DSP Blackrock and UTI Mutual Fund were amongst the biggest buyers of the stock.

Amongst mid-caps, Ranbaxy Laboratories was the most bought stock of the month and Bank of Baroda was the most sold stock. Balarampur Chinni Mills was the most sold small-cap stock while Triveni Engineering was the most bought stock during the same time.