VR Logo

Funds in Mid-Cap Space

Here are the most bought/sold stocks by fund managers in this category

It was during the period of May-June this year that a material market revival cemented itself, when Sensex gained 27.1 per cent, while the BSE Mid-cap index soared 44.46 per cent.

Apart from the foreign institutional investors (FIIs) and retail investors, the appetite for stocks increased in fund managers too. During the period, the mutual fund (MF) industry invested an average of Rs 35,894.46 crore in mid cap stocks.

While the MF managers were slow to react to the rise in markets, yet considering that the valuations were quite low across a spectrum of sectors, there were many stocks that they sought and some that they actually bought. And quite naturally, some of them became hot favourites for managers.

These stocks that we will be looking at fall in the mid-cap category.

A look at the figures of the top five stock moves made by the funds for the month of May-June 2009, reveals that Ultratech Cement remained at the top of the table in terms of worth of shares bought. But it was Sesa Goa that the maximum number of funds added to their portfolio, but the margin was razor thin on the popularity charts (see table).

Shares worth Rs 302 crore of Ultratech Cement were bought during this period while the figures stood at 42.37 lakh shares bought. Altogether, 22 funds added this stock in their portfolio, which was only one less than that of Sesa Goa which was picked up by 23 funds. At the same time, shares worth Rs 155 crore were brought of Sesa Goa, making it the third largest stock to be brought amongst the top five. United Spirits however, remained second in position after shares worth Rs 173 crore were brought, while the number for shares bought was 19.42 lakh.

India Infoline and Shree Renuka Sugars held the fourth and fifth position. While shares worth Rs 130 crore were bought as far as India Infoline was concerned, it was Rs 99 crore worth of shares for Shree Renuka Sugars. Funds that added these two stocks in their portfolio were 7 and 17 respectively.

Along with the top stocks, there were also some which performed poorly on the popularity charts during this period.

At the top was Aban Offshore. Eight funds pulled the stock out from their portfolio. Shares worth Rs 103 crore were sold, while the number of shares was 10.46 lakh.

On the other hand, despite being in the top five most-sold stocks list, Crompton Greaves and United Phosphorus managed to increase the number of funds that bought its stock, with four each. However, funds shed almost Rs 62 crore each worth of their stocks.

Crompton Greaves remained second in terms of worth of shares sold, though the numbers were way down from that of Aban Offshore. Shares worth Rs 73 crore were sold while the number of shares sold remained at 25.58 lakhs for Crompton Greaves.

Similarly, shares worth Rs 61 crore were sold as far as United Phosphorus was concerned. Hindustan Construction Limited and Tata Motors remained at the bottom of the table.  The number of funds that pulled out these stocks from their portfolio was 11 and 4 respectively.

Mid-Cap Movers
Most Bought Stocks            
Company    Shares Bought (lakhs)    Worth of Shares Bought (Rs Cr)    Fund Count Diff
Ultratech Cement   42.37   302.16   22
United Spirits   19.42   173.53   4
Sesa Goa   85.31   155.73   23
India Infoline   96.32   130.08   7
Shree Renuka Sugars   71.78   99.12   17
Most Sold Stocks            
Company    Shares Sold (lakhs)    Worth of Shares Sold (Rs Cr)    Fund Count Diff
Aban Offshore   10.46   103.36   -8
Crompton Greaves   25.58   73.87   4
United Phosphorus   39.42   61.96   4
Hindustan Construction Co.   56.99   61.42   -11
Tata Motors   16.54   57.46   -4
Data between June 09 and May 09