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Sell-off Dominates Funds

In October, the fund industry has emerged as a net seller by as much as Rs 5,194 crore

All the indices, barring FMCG, closed slightly in the red for the month of October. Mutual funds added to the effect of falling markets by indulging in some stock selling of their own. They were net sellers to the extent of Rs 5,194.30 crore for the month. On the other hand, foreign institutional investors (FIIs) invested Rs 9,077 crore.

In such a scenario, we took a look at what the mutual fund industry bought and sold for the month of October in the large cap stocks which constitute the top 70 per cent of the market capitalization.
Blame it on the uncertainty created by the Reliance Industries-Reliance Natural Resources gas dispute, the former led from the front in terms of the amount of its shares sold by funds. Funds sold off 38.66 lakh RIL shares amounting to Rs 818.17 crore.
RIL stock price fell 12.26 per cent for the month of October.

ICICI Prudential Infrastructure, Franklin India Flexi Cap and DSPBR Top 100 Equity were the top sellers as they offloaded 4.98 lakh, 3.36 lakh and 2.30 lakh of RIL shares respectively. Currently, there are 237 funds holding the stock, out of which seven new funds added it in their portfolio, while eight funds pulled totally out of it.

Following Reliance was the State Bank of India (SBI) which saw a sell-off to the tune of Rs 416.16 crore, or 18. 47 lakh shares. Altogether, 15 new funds added the stock to their portfolio while nine exited entirely. SBI’s stock price took a minor hit as it dipped 0.21 per cent for the month.

Reliance Equity bought the maximum shares (3.61 lakh), while Franklin India Flexi Cap, DSPBR T.I.G.E.R and HDFC Top 200 opted to sell 4, 2.30 and 2.19 lakh shares respectively. In all, 203 funds are holding on to the stock.

Taking the third position was Jai Prakash Associates, which witnessed 127.49 lakh shares being sold amounting to Rs 304.17 crore.

At the other end of the spectrum, the top slot notched up, as far as shares bought were concerned, was by the information technology giant Infosys Technologies. 13.52 lakh shares worth Rs 302.58 crore were bought with ICICI Prudential Dynamic, HDFC Equity and HDFC Top 200 buying the maximum -- 4.11 lakh, 3.45 lakh and 2.86 lakh shares respectively. Seven new funds added the stock to their portfolio while 10 of them opted out. Currently 203 funds are holding onto this stock. However despite being at the top of the table as the most-bought stock, the share price of the IT giant dipped 4.46 per cent for the month of October.

Second and third in the list were Larsen & Toubro and Infrastructure Development Finance Company (IDFC) which had shares worth Rs 282.69 crore and Rs 176.03 crore being bought respectively. As far as IDFC was concerned, 35 funds added the stock to its portfolio while 12 of them got out of it.

HDFC Equity bought maximum shares, 3.08 lakh, in Larsen & Toubro while it was Franklin India Flexi Cap which bought 27.43 lakh shares in IDFC.


Most-Bought Stocks Shares Bought
Large Cap (Rs Cr) (Numbers in Lakhs)
Infosys Technologies  302.58 13.52
Larsen & Toubro  282.69 17.23
176.03 114.70
Cipla  127.35 44.11
Tata Consultancy Services  122.66 20.00
Data Period: October 1, 2009 to 31    


Most-Sold Stocks Shares Sold
Large Cap (Rs Cr) (Numbers in Lakhs)
Reliance Industries  818.17 38.66
State Bank of India 416.16 18.47
Jai Prakash Associates  304.17 127.49
Bharti Airtel  228.40 66.51
Tata Steel  179.11 33.88