Despite the market rally in the period of May-June this year, the small-cap stock buying activity by fund managers remained the minimum, in terms of worth of shares when compared to large- and mid-cap stocks.
That is not to say that small-cap stocks were not rising. They were virtually sky-rocketing during this period, based on the principle that smaller stocks shoot up the most during a rally and fall the most during a market crash.
It was during this period that the Sensex gained 27.1 per cent while the BSE small-cap index soared 45.65 per cent.
The stock favourite of fund managers in this category was Network 18 Media and Investments, which was added to the portfolios of 11 funds. Its shares worth Rs 64 crore were bought, while the total number of shares added up to 47.49 lakh.
Second in line was ING Vyasa Bank, which was added to the portfolios of six funds. Shares worth Rs 47 crore were bought, while the number of shares involved totted up to 27.58 lakh.
Meanwhile, Mahindra Life Space Developers managed to lure a similar number of funds as ING, while shares worth Rs 41 crore were bought and the shares involved added up to 14.14 lakh.
However only two funds added Alok Industries’ stock to their portfolios. It stands at fourth spot in the list of top five small-cap stocks in the portfolios of the mutual fund industry. Shares worth Rs 38 crore were bought while the number of shares involved in the transactions stood at 159.20 lakh.
Motilal Oswal Financial Services however, was the last of the top small-cap stocks. Only two funds added the stock to their portfolio while shares worth Rs 34 crore were bought.
Interestingly, the top five small-cap stocks which were most-bought involved a total transactions sum of Rs 225 crore all together.
The small-cap stocks in which fund managers exited the most included Monnet Ispat. It led from the front amongst the top five most-sold off stocks by mutual funds.
Three funds pulled the stock out from their portfolio, which involved a sum of Rs 44 crore for 17.23 lakh shares.
Kingfisher Airlines too remained in this category although no companies pulled out the stock from its portfolio. However, fund managers left no one in doubt about the fact that they were not enthused by the stock. Some Rs 42 crore worth of shares were sold, while the number of shares involved added up to 72.95 lakh.
No fund manager pulled out totally from KSB Pumps stocks either, but Rs 30 crore worth of stock was sold, which involved 7.92 lakh shares.
The bottom two amongst the top five most-sold stocks included Norvatis India and AIA Engineering. Curiously, while five funds pulled the stock out from their portfolio entirely, the same number of funds added the stock of Novartis India.
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