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May Mid-cap Mayhem

The BSE Mid-cap Index fell by 5.3% during May. Find out what the funds did with the mid-cap stocks

To begin with, allow us to apologize for bringing you yet another sob story. But with the way the Indian markets have been performing, we have hardly any good news to report. Well, the month of May, 2008 wasn’t a good one for the markets. The Sensex fell by 5.3 per cent and a similar percentage fall was witnessed by the BSE Mid-cap Index as well.


Here’s a summary of what the fund managers bought and sold in the mid-cap horizon during the month. Value Research’s stock classification puts mid-cap stocks as the stocks accounting for 20 per cent of the total market capitalization. As on 31st May, 2008, 199 companies were classified as mid-caps.


Amongst them, the most fancied stocks (stocks bought the most by funds) include Great Eastern Shipping,Dabur India , Glaxo Smithkline Consumer Healthcare, ACC, Mercator Lines, Tata Chemicals and Thermax. Of these, Great Eastern Shipping was the most sought after mid-cap stock with 13 funds adding it to their portfolio. Following it, in second place, was Dabur India, which was added by nine funds.


The buying spree predictably turned out to be good news for some stocks, which gained sharply. Great Eastern Shipping was up by 14 per cent while Mercator Lines gained 17 per cent. However, some stocks from the above given most-fancied list witnessed a fall in the stock price – Thermax was down by 15 per cent, ACC by 13 per cent and Dabur by 9 per cent.


As far as the most sold-off stocks are concerned, Hindustan Petroleum topped this chart. 10 funds sold off this stock, but 35 funds still continue to hold on to it. Bharat Petroleum, BGR Energy Systems, Maharashtra Seamless and Television Eighteen India were the other sold-off mid-cap stocks. The prices of these stocks fell sharply, with the exception of Maharashtra Seamless, which was up by 9 per cent. The stock was sold off by six funds, but is still held by 23.


In conclusion, it was yet another dismal month for the mid-cap stocks, but for a few gainers.