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ONGC is Fund Favourite

Here are the stocks that enticed funds and those that they sold

Sensex gained 8.11 per cent in the period between June 30 and July 31. As a natural corollary we also saw fund managers' activity strengthening on the bourses.

We take a look at the stocks that made it to the most-bought and most-sold categories of funds as they looked to book gains for the present and mark future profits. We track their activities in all three categories namely, large-cap, mid-cap and small-cap.

Focus on Large-Caps

Oil and Natural Gas Corporation (ONGC) came at the No. 1 position as the most-bought stock by funds. An amount of Rs 731 crore was spent to buy 68.67 lakh shares. Sterlite Industries (India) followed in the second spot with funds outlaying an amount of Rs 688.71 crore.

State Bank of India, National Thermal Power Corporation (NTPC) and Jai Prakash Associates took up their respective positions in the third, fourth and fifth positions, with funds buying their shares to the extent of Rs 351 crore, 337 crore and Rs 181 crore.

While the top of the charts position was taken by ONGC in the Large-cap segment, bringing up the rear, or stocks most-sold by funds was Reliance Industries. Funds sold as much as Rs 362 crore worth of shares. It was closely followed by steel giant Tata Steel whose stocks were worth Rs 243 crore were sold. Infrastructure Development Finance Company, Axis Bank and Infosys Technologies remained at the third, fourth and fifth positions with shares sold worth Rs 240 crore, Rs 208 crore and Rs 178 crore respectively.

As such, in Large-cap space, fund managers bought stocks worth as much as Rs 2,290.43 crore in the top 5 most-bought stocks, while they sold as much as Rs 1,233.63 crore in the most-sold top 5 stocks.

The returns in July 2009 in the large cap category was 10.57 per cent.



Large Cap Stocks
Stocks Bought    
Company  Worth of Shares Bought (Rs Cr)  Shares Bought (lakh)
Oil & Natural Gas Corpn.  731.11 68.67
Sterlite Industries (India)  688.71 113.23
State Bank of India 351.68 21.00
National Thermal Power Corp.  337.48 165.69
Jai Prakash Associates  181.46 84.77
Stocks Sold    
Company  Worth of Shares Sold (Rs Cr)  Shares Sold (lakh)
Reliance Industries  362.16 18.77
Tata Steel  243.68 60.08
Infrastructure Development Finance Co.  240.14 179.53
Axis Bank  208.94 24.61
Infosys Technologies  178.71 9.58
Data between Jun 09 and July 09

Focus on Mid-Caps

In the Mid-cap space, Emami and Max India vied with each other to become the funds’ favourites in this segment. As a result there was not much separating them, although the winner was Emami with its stock bought by funds adding up to Rs 139 crore, while funds spent Rs 133 crore for buying Max stocks – the number of shares bought were 38.59 lakh and 66.08 lakh respectively.

The other three stocks in the list were Indiabulls Financial Services, Balrampur Chini Mills and India Infoline. Stock worth Rs 123 crore, Rs 110 crore and Rs 106 crore was bought in them respectively. Indiabulls may have made it into the most-bought top 5 stocks list, but it managed to do worse on the most-sold list, topping the charts after funds sold as much as Rs 149 crore worth of its stock. The next three in the category, Educomp Solutions, Suzlon Energy and ABB shared somewhat similar figures as shares worth Rs 125 crore, Rs 122 and Rs 110 were sold respectively.

As such, in Mid-cap space, fund managers bought stocks worth as much as Rs 613.71 crore in the top 5 most-bought stocks, while they sold as much as Rs 596.16 crore in the most-sold top 5 stocks.

The returns in July in the Mid-cap category stood at 10.55 per cent.



Mid Cap Stocks
Stocks Bought    
Company  Worth of Shares Bought (Rs Cr)  Shares Bought (lakh)
Emami  139.72 38.59
Max India  133.06 66.08
Indiabulls Financial Services  123.42 66.84
Balrampur Chini Mills  110.92 104.32
India Infoline  106.59 84.05
Stocks Sold    
Company  Worth of Shares Sold (Rs Cr)  Shares Sold (lakh)
Indiabulls Real Estate  149.22 68.71
Educomp Solutions  125.74 3.15
Suzlon Energy  122.73 127.60
A B B  110.86 15.35
India Cements  87.60 62.87
Data between Jun 09 and July 09

Focus on Small-Caps

Coming to the Small-cap category, it was Texmaco which held the first position in the top five stocks list. Shares worth Rs 132 crore were bought in it by funds. Shobha Developers came second with shares worth Rs 101 crore being bought in it, while Apollo Tyres and Sterlite Technologies grabbed the third and fourth slots with shares bought in them adding up to Rs 73 crore and Rs 49 crore respectively.

Amongst the stocks that were most-sold in the Small-cap category, included Pfizer. Shares sold in it added up to Rs 147 crore. Gujarat State Fertilizers and Chemicals was the second stock most-sold at Rs 53 crore. The other three in the five most-sold category list were Great Offshore, Shaw Wallace & Company and Adlab Films with shares sold totting up to Rs 50 crore, Rs 33 crore and Rs 21 crore respectively.

As such, in Small-cap space, fund managers bought stocks worth as much as Rs 388.68 crore in the top 5 most-bought stocks, while they sold as much as Rs 306.43 crore in the 5 most-sold stocks.

The return in the Small-cap category in July stood at 4.43 per cent.



Small Cap Stocks
Stocks Bought    
Company  Worth of Shares Bought (Rs Cr)  Shares Bought (lakh)
Texmaco  132.09 126.86
Sobha Developers  101.67 49.56
Apollo Tyres  73.86 213.98
Sterlite Technologies  49.95 25.15
Kesoram Industries  31.11 9.98
Stocks Sold    
Company  Worth of Shares Sold (Rs Cr)  Shares Sold (lakh)
Pfizer  147.31 19.15
Gujarat State Fertilizers & Chemicals  53.64 33.59
Great Offshore  50.84 11.72
Shaw Wallace & Co.  33.38 16.66
Adlabs Films  21.26 6.51
Data between Jun 09 and July 09

Wrap-Up

In short, to an extent, it is clear from the table that fund managers are keen to safeguard their investments by putting in greater amounts into the Large-cap segment -- they keep progressively reducing their investments across the smaller market-capitalised companies. The total equity investments by open-ended funds as on July 31, 2009 stood at Rs 1,34,495.47 crore.