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The Sensex Picks

It was a season of large-caps for fund managers

This year, fund managers seem to be playing it safe by sticking to large caps. In February 2009, open-ended diversified equity funds collectively had an allocation of 37.39 per cent of their assets to Sensex stocks. By July, the number did not fall but went up marginally to 40.37 per cent. This has been the highest in the 36 months running from August 2006 to July 2009. Looking over this three-year period, what has been interesting is the change in preference of stocks. We looked at the number of shares held by fund managers of those stocks which have consistently been Sensex constituents over that three-year period.

Private banks HDFC Bank and ICICI Bank witnessed an increase of 633 per cent and 326 per cent, respectively, in the number of shares held. State Bank of India showed an insignificant rise of 0.63 per cent.

Wipro and TCS saw an increase of 125 per cent and 103 per cent, respectively. Surprisingly, Infosys Technologies saw a fall of 2.5 per cent during the same period. 

Reliance Communications certainly fell out of favour with a drop of 32.29 per cent. Bharti Airtel saw a rise of 46.82 per cent.

NTPC and ONCG witnessed a rise of 230.72 per cent and 47.07 per cent, respectively. Reliance Industries saw a dip of 9.39 per cent.

Hindustan Unilever witnessed a rise (11.29 %) while ITC dropped (23.55 %).