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Funds Steel Up

Funds' favourites in December included Tata Steel and SAIL, but Jindal Steel & Power fell in most-sold list

The last month of the year threw up its share of funds’ favourite stocks and those that they considered worth selling. Intriguingly, Tata Steel and Tata Motors emerged at either ends of the most-bought and most-sold spectrum, in the large-cap segment. While Tata Steel is one of the world’s largest steel-making companies, Tata Motors has made motoring headlines across the world with the cheapest car in the world, the Nano and for buying luxury car makers Jaguar and Land Rover.

They also made stock market news as Tata Steel scrip jumped 203 per cent across a 1-year period ending January 14, 2010, while Tata Motors gain over the same period was 346.19 per cent.

While for the entire year Sensex had risen by 81 per cent, the performance of the index in December was 3.18 per cent. In this story we chart the stocks that made it to the top of the most-bought and most-sold list.

In December, the stock that the maximum number of funds pursued was DB Corporation, which had its initial public offering (IPO) running in the month. As many as 58 funds added it to their portfolio – no other stock was chased by that many funds.

Another IPO-centred stock offering was Godrej Properties. However, it could not match the number of funds that bought into DB Corp. Some 25 funds bought into the realty company’s IPO.

However, among the already-listed companies, HCL Technologies’ stock dominated the funds’ mindset, with the number of funds that added it to their portfolio totalling 31, but since two of the already invested funds exited the stock, the net addition was 29 in December, thereby improving its standings from 49 funds to 78. 

The most-dumped stock of the month was Bank of Baroda, felling it from a fund count of 100 in November to 85 in December. Altogether 19 funds pulled this stock out of their portfolio, while four new ones added it to theirs. 

Large-Cap: Most-Bought

Tata Steel

78.03 lakh shares, worth of Tata Steel shares, adding to Rs 448.26 crore, were purchased, making it the most-bought stock in December in terms of money spent. Three Reliance funds - Reliance Natural Resources Retail (RNRR), Reliance Vision and Reliance Tax Saver - made up the top 5 funds that bought into the scrip, with RNRR buying the maximum at 15.91 lakh shares.

At the other extreme was JM Basic, which offloaded the maximum number of shares at 3.64 lakh. 

Altogether 11 funds added this stock in their portfolio, while five funds opted out, increasing its fund count from 129 to 135. 

Hindalco Industries 

Second, in terms of money spent was Hindalco. But in terms of number of shares bought it still pipped Tata Steel. 92.91 lakh shares worth Rs 135.89 crore were bought by funds in December. Reliance Vision bought the maximum number of shares at 48.83 lakh. Sundaram BNP Paribas Select Midcap Reg offloaded the maximum number of shares at 17.67 lakh. 

Altogether 21 funds added this stock in their portfolio, while four opted out of it, increasing its fund count from 90 to 107. 

Oracle Financial Services Software

Some 4.76 lakh shares worth Rs 103.33 crore were bought by funds. ICICI Prudential Dynamic bought the maximum number of shares at 1.71 lakh, while Franklin India Opportunities offloaded the maximum number of shares at 0.09 lakh. In fact, Franklin India Opportunities was the only fund to remove the stock from its portfolio. 

Other big stock market entities like NTPC and SAIL witnessed fund buying to the extent of 46.59 lakh shares worth Rs 99.80 crore and 45.35 lakh shares worth Rs 98.06 crore respectively. 

The number of funds invested in the stock increased from 57 to 64.


Most Bought Stocks
Large Cap  Worth of Shares Bought (Rs Cr)  Shares Bought (lakhs)
Tata Steel  448.26 78.03
Hindalco Industries  135.89 92.91
Oracle Financial Services Software  103.33 4.76
National Thermal Power Corp.  99.80 46.59
Steel Authority Of India  98.06 45.35
Data between Nov 09 - Dec 09

Large-Cap: Most Sold

Tata Motors 

While one Tata Group corporate entity was the darling of the fund industry, another became a pariah of sorts. Tata Motors stock was the most-sold at 32.08 lakh shares worth Rs 232.90 crore. Again, Reliance Mutual Fund was at the centre of the activity with three of its funds - Reliance Vision, Reliance Tax Saver and Reliance Regular Savings Equity - offloading the maximum number of shares at 6.09 lakh, 6.02 lakh shares and 4.52 lakh shares respectively. 

Altogether five funds added this stock in their portfolio while seven opted out of it, dropping the total number of funds invested in this stock from 98 to 96. 

State Bank Of India

It garnered the second spot in the most-sold stock table. 7.67 lakh shares worth 172.06 crore were sold in the month. Tata Infrastructure sold the maximum number of shares at 1.55 lakh, while DSPBR Top 100 Equity Reg bought the maximum at 1.86 lakh. 

Altogether seven funds added this stock to its portfolio while 12 opted out of it. 

Jindal Steel and Power 

21.16 lakh shares worth Rs 151.46 crore were sold, with three Reliance funds – Reliance Equity, RNRR and Reliance Diversified Power Sector Retail – topping the top 5 funds who sold the maximum. 

Altogether seven funds added this stock to their portfolio, while nine opted out of it. 


Most Sold Stocks
Large Cap  Worth of Shares Sold (Rs Cr)  Shares Sold (lakhs)
Tata Motors  -232.90 -32.08
State Bank of India -172.06 -7.67
Jindal Steel & Power  -151.46 -21.16
Jai Prakash Associates  -138.74 -93.13
Bank Of Baroda -137.88 -26.88
Data between Nov 09 - Dec 09