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Funds' Mid-Cap Manoeuvrings

Mutual funds' top stock selection in December spanned construction, oil and power

The potential to rise at a pace that is greater than the one exhibited by the biggest companies in India puts mid-cap stocks at centre stage for most investors who want relatively quicker gains, while not taking too many risks. The argument applies equally to funds too.

Seen in terms of the performance of stock market indices then, while Sensex gained 81 per cent in 2009, BSE MidCap index gained in excess of 100 per cent.We track the stock that excited the fund managers the most as well as those stocks that they favoured selling in the month of December, 2009.

Mid-Cap: Most-Bought Gammon India 

Altogether 63.66 lakh shares worth Rs 150.32 crore were bought of this stock making it the most-bought mid-cap stock for the month. Morgan Stanley Growth, Reliance Regular Savings Equity and Sundaram BNP Paribas Select Midcap Reg were the three funds which bought the maximum at 17.53 lakh, 16.92 lakh and 11.86 lakh shares respectively.On the other hand, ICICI Prudential Emerging STAR offloaded the maximum number of shares at 0.60 lakh.While six funds added this stock to their portfolio, three opted out of it, taking the number of funds invested in it in November from 11 to 14 in December.

Hindustan Petroleum Corporation 

The next most-sought stock was Hindustan Petroleum Corporation, with fund managers buying 16.98 lakh shares worth Rs 65.23 crore. There was a complete change in fortunes of this stock as in November it was in the most-sold list. Reliance Diversified Power Sector Retail bought the maximum number of shares at 23.09 lakh, while Reliance Equity bought 11.18 lakh shares.The fund that offloaded this stock the most was ICICI Prudential Infrastructure at 7.94 lakh shares.Altogether 17 funds added this stock in their portfolio while 15 removed the stock from its portfolio taking the total number of funds invested in it from 88 in November to 90.

ABB

Fund managers bought 8.29 lakh shares worth Rs 62.20 crore, with DSPBR Top 100 Equity Reg becoming the largest buyer at 4.80 lakh shares. UTI Infrastructure offloaded the maximum amount at 0.14 lakh shares.Altogether seven funds added this stock to their portfolio, making for an increase in the number of funds exposed to this stock from 42 to 49.Other mid-cap stocks that saw some frenzied activity were Suzlon Energy and Aban Offshore with 67.62 lakh shares worth Rs 56.63 crore and 4.54 lakh shares worth Rs 56.18 crore respectively being bought. The spotlight was on Aban Offshore in November, 2009 too as it was the most-bought stock in the mid-cap category.

Bought Stocks
Mid Cap    Worth of Shares Bought (Rs Cr)    Shares Bought (lakhs)
Gammon India   150.32   63.66
Hindustan Petroleum Corpn.   65.23   16.98
A B B   62.20   8.29
Suzlon Energy   56.63   67.62
Aban Offshore   56.18   4.54
Data between Nov. 30, 2009 - Dec. 31, 2009
 

Mid-Cap: Most-Sold

Yes Bank

This stock led from the front in most-sold by funds stocks category. 58.35 lakh shares worth Rs 152.41 crore were offloaded. The company's stock was the third-most sold stock in November, 2009 too. Franklin India Flexi Cap offloaded the maximum 21.07 lakh shares of this stock while Sundaram BNP Paribas Select Focus Reg and Franklin India High Growth Companies also offloaded a lump sum 15.18 lakh and 10.09 lakh shares respectively.

Despite the general 'sell' call on this stock, two funds added it to their portfolio, while four removed it. As a result, the stock's fund count dropped from 30 to 28.

Lupin

This stock gained the number two position in the most-sold stock table in December after 8.78 lakh shares worth 126.47 crore were offloaded. Sundaram BNP Paribas Select Focus Reg bought the maximum number of shares at 1.09 lakh, while two funds of HDFC - HDFC Equity and HDFC Prudence offloaded the maximum at 3.08 lakh and 2.15 lakh shares of this stock respectively.

While the selling was brisk in this counter, it did not stop other funds from buying into it. In fact, seven funds added this stock t their portfolio, while three removed I, taking the total November's fund count of 104 to 108 in Dcemeber.

Pantaloon India (Retail)

This retail biggie saw funds offloading as much as 25.63 lakh shares worth Rs 92.91 crore in the month. It was in the most-sold list in November too, at the second spot. This time around, Sundaram BNP Paribas Select Focus Reg offloaded the maximum at 4.10 lakh shares, while Franklin India Flexi Cap bought the maximum at 1.60 lakh. Apart from the former, there were seven funds which offloaded 2 lakh, or more, of its shares.

Six funds added the stock to their portfolio, while 13 funds removed it, dropping the November fund count from 82 to 75 in December.

Amongst the other stocks that were sold the most were I.V.R.C.L. Infrastructure & Projects and United Spirits. Funds offloaded 25.49 lakh shares worth Rs 91.62 crore and 5.93 lakh shares worth Rs 77.30 crore respectively. United Spirits was the fourth most sold stock in November.

Overall, investments in the top five most-bought stocks added up to Rs 390.55 crore, while the amount shed in the top five most-sold stocks added up to Rs 540.71 crore.

Sold Stocks
Mid Cap    Worth of Shares Sold (Rs Cr)    Shares Sold (lakhs)
Yes Bank   -152.41   -58.35
Lupin   -126.47   -8.78
Pantaloon Retail (India)   -92.91   -25.63
I V R C L Infrastructures & Projects   -91.62   -25.49
United Spirits   -77.30   -5.93
Data between Nov. 30, 2009 - Dec. 31, 2009