The Dumping Zone

Allright, so we had a look at the ‘Most Fancied Buys’ of June 2008 – stocks which the fund managers bought the most. The financial services sector was on the top of that list with Infrastructure Finance Corporation being the most bought stock of the month. Well, now let’s have a look at the major sell-offs of June. When the markets are down, a number of stocks suffer a major brunt of the downfall. And predictably, fund managers try to offload these stocks to try and escape with as little damage as possible. In June, the biggest sell-off was the diversified mid-cap stock Aditya Birla Nuvo. Mutual funds sold 8.4 lakh shares of the company, worth nearly Rs. 100 crore. This wasn’t really a surprise as the company’s stock fell by 18 per cent. Other diversified companies that were sold off by mutual funds included Jai Prakash Associates, Century Textiles & Inds, and Greaves Cotton. Jai Prakash Associates was dumped by 14 funds, the told sell-off amount amounting for Rs. 90 crore. The company’s stock had fallen by 33 per cent during the month. The other companies in the list witnessed steep falls as well. Tech major In