Banking sector stocks caught the fancy of the mutual funds for first month of 2010.
Leading from the front, it was ICICI Bank which remained the most preferred while State Bank of India and HDFC Bank secured its place in the top five most bought stocks.
However, Hindalco Industries which is the metals flagship company of the Aditya Birla Group, one of the world's largest aluminium rolling companies and one of the biggest producers of primary aluminium in Asia, was the most shunned stock for January 2010. The stock was the second most bought stock in December 2009. Meanwhile power and IT sector stocks dominated the top five most sold stocks in January this year which included biggies like IT giant Infosys Technology and Tata Consultancy Services.
In January, the stock which was pursued the maximum was Infinite Computer Solutions (India), a leading global provider of IT services, Infrastructure Management Services (IMS) and Intellectual Property (IP) Leveraged Solutions whose Initial Public Offering came in January. The stock was lapped up by as many as 50 funds.
However as far as the listed companies were concerned, it was Usha Martin, India’s largest and the world’s second largest steel wire rope manufacturer, was the most preferred stock in January as it was lapped by as many as 22 funds.
The other stocks which found interest amongst funds and made it to the top most preferred stocks table were Siemens Limited, India Cements, HDFC Bank and Power Grid Corporation of India after they were lapped up by 17, 13, 10 and 10 funds respectively in January.
On the other end of the spectrum, it was DB Corporation whose IPO came in the month of December and was lapped up by a whooping 58 funds saw the maximum 36 funds shunning the stock in January. Meanwhile, the stocks of Hindalco Industries which was amongst the most bought stocks in December were also shunned in January by 20 funds.
The other two stocks which was majorly shunned by funds were Godrej Properties and Jindal Steel and Power which were shunned by 12 and 11 funds respectively. It is worth a mention here Godrej Properties which too was an IPO offering in December was lapped by 25 funds in December 2009.
Most Bought : Large Cap
ICICI Bank
Mutual funds bought 55.76 lakh shares worth Rs 475.75 crore of this stock in January. Three funds of HDFC MF made it to the top four of those which had bought the maximum of this stock. HDFC Equity 11.10 lakh shares while HDFC Top 200 and HDFC Prudence bought 5.94 lakh and 5.49 lakh shares of this stock respectively. Meanwhile two funds of DSPBR – DSPBR Top 100 Equity and DSPBR Equity shunned the maximum 8.35 lakh and 2.69 lakh shares in January.
However, it was DSPBR MF whose six funds shunned 12.60 lakh shares of this stock in January. In terms of number of shares though, HDFC MF topped the list as the fund house bought 25.01 lakh shares of this stock followed closely by Franklin Templeton Fund house which bought 19.71 lakh shares.
Reliance Industries
Mutual funds bought 36.99 lakh shares worth Rs 398.34 crore of Reliance Industries, the largest company by market capitalisation in the country, making it the second most preferred stock in January. DSPBR Top 100 Equity and Franklin India Flexi Cap were the top buyers of this stock after they bought 6.47 lakh and 4 lakh shares respectively. HDFC Growth and Unit Linked Insurance Plan ‘71 however shunned this stock the maximum after they sold2 lakh and 2.26 lakh shares respectively in January. Altogether 12 funds added this stock in their portfolio while five got out of it.
As far as Fund houses were concerned, in terms of number of shares, it was DSPBR and Franklin Templeton which remained at the top of the table after they bought 12.90 lakh and 8.11 lakh shares of this stock. Deutsche Mutual Fund and HDFC AMCs shunned this stock the maximum.
State Bank of India
This stock which figured out in the most shunned stock in December bounced back strongly in January 2010 to make it to the third position in the top five most preferred stocks. Mutual funds bought 13.79 lakh shares worth Rs 300 crore in January. As far as funds were concerned, four funds of Reliance, Reliance Vision, Reliance MIP, Reliance Growth and Reliance Equity Opportunities bought the maximum 4.39 lakh, 3.50 lakh, 1.49 lakh and 1.25 lakh shares of this stock. Similarly, it was two funds of Franklin Templeton – Franklin India Flexi Cap and Franklin India High Growth Companies which shunned the maximum 2.67 lakh and 1.02 lakh shares of this stock. Seven funds added this stock in its portfolio while eight pulled out of it in January.
Meanwhile DSPBR and Franklin Templeton fund houses shunned this stock the maximum. While three funds of DSPBR shunned the stock in January, 2 funds of Franklin Templeton shunned this stock. As far as number of stocks are concerned, Reliance MF bought the maximum 11.36 lakh shares of this stock while Franklin Templeton MF shunned the highest 3.83 lakh shares of this stock.
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Most Sold: Large Cap
Hindalco Industries
One of the world's largest aluminium rolling companies, mutual funds shunned 283.35 lakh shares worth Rs 466.37 crore of this stock making it the most shunned stock in January. Two funds of Reliance – Reliance Vision and Reliance Natural Recources sold off the maximum 48 lakh and 32 lakh shares of this stock while four other funds dumped more than 20 lakh shares each in January.
Meanwhile Birla Sun Life Enhanced Arbitrage, HDFC Arbitrage Retail and SBI Arbitrage Opportunities, all falling under the arbitrage category, bought this stock the maximum with 5.13 lakh, 4.72 lakh and 4.33 lakh shares respectively. Two funds added this stock in its portfolio while 22 funds removed this stock from its portfolio.
On the other hand, eight funds of DSPBR fund house shunned this stock in January while three each of Kotak Mahindra, L&T and Franklin Templeton did the same in January. In terms of number of shares, it was Reliance MF which shed 101.10 lakh shares while Franklin Templeton and DSPBR shunned 50 lakh and 45 lakh shares respectively of this stock.
Infosys Technology
12.89 lakh shares worth Rs 333.26 crore of this stock were shunned by mutual funds in Janauary 2010. Reliance Tax saver shunned the maximum 2 lakh shares of this stock while ICICI Prudential Dynamic bought the maximum 1.50 lakh shares of this stock. Altogether five funds added this stock in their portfolio while nine funds removed the stock.
Meanwhile, two funds each of Kotak and SBI Mutual fund pulled out of this stock while the same number of funds of Axis Mutual fund added this stock in January. In terms of number of shares, it was Franklin Templeton, Reliance and HDFC AMCs which pulled out the maximum 3.51 lakh, 3.47 lakh and 3.31 lakh shares of this stock.
NTPC
Mutual funds sold 126.48 lakh shares worth Rs 287.41 crore of this stock making it the third post shunned stock in January. ICICI Prudential Infrastructure shunned the maximum 29.44 lakh shares of NTPC which the country’s largest power company. Four other funds, HDFC Equity, Reliance Natural Recources, DSPBR TIGER and Reliance Equity Advantage also shunned more than 10 lakh shares of this stock. Reliance Vision meanwhile bought the maximum 30 lakh shares in January.
Altogether eight funds added this stock while 11 funds removed it from their portfolio. HDFC AMC’s three funds removed this fund in January while two funds of Franklin Templeton did the same. On the other other of the spectrum, it was IDFC’s two funds which added this stock. In terms of number of shares, it was ICICI Prudential and HDFC MFs which shunned the maximum 33.12 lakh and 32.87 lakh shares of this stock. Meanwhile four other fund houses, UTI, DSPBR, Franklin and HSBC shunned more than 10 lakh shares each of this stock in January 2010.
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