The month of July 2008 was significant to the Indian capital markets for a number of reasons, with the first and foremost being the Sensex ending the month in the green. It was the first time in the year that the Sensex ended with positive returns, thanks largely to the positive vibes coming out of the Finance Ministry. This was something that the mutual fund fraternity was eagerly waiting for and consequently, a large number of open- and closed-ended funds turned sellers in July. After getting severely hammered all through the year, fund houses booked their profits and sold shares worth Rs. 2,390 crore during the month.
Biggie funds like ICICI Pru Infrastructure, Reliance Equity and DSPML T.I.G.E.R. were at the forefront of the funds booking profits. The major stocks sold by these funds were the large-caps ONGC and Reliance Industries. ICICI Pru Infrastructure alone sold around Rs. 107 crore worth of ONGC. Overall, out of the 361 equity-orinted funds, 193 turned net sellers in July.
However, though a majority of the funds turned sellers, a small minority turned buyers by indulging in bargain hunting. The monsoon sale was on for funds like HDFC Infrastructure, HDFC Top 200 and Reliance Natural Resources in particular. The buyer funds cashed in their cash holdings to make purchases of around Rs. 1,950 crore. But while the sellers sold a majority of similar stocks, the choice of stocks bought by the buyers was more varied and diverse. This implies that currently the funds are betting more on the tried and tested theory of diversification, rather than going for concentrated sector/industry bets.
Here’s a look at the major sellers and buyers of July…
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
