VR Logo

The Buyers & Sellers

While a majority of funds turned sellers to book profits in July, a few turned buyers as well

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…

Major Buyers  Rs. Cr
HDFC Infrastructure 136
HDFC Top 200 109
Reliance Natural Resources 106
ICICI Prudential Dynamic 97
Tata Infrastructure 75
HDFC Growth 68
Reliance Vision 63
Sundaram BNP Paribas Select Midcap Reg 62
UTI Infrastructure 57
IDFC Enterprise Equity 56
Major Sellers  Rs. Cr
ICICI Prudential Infrastructure 210
Reliance Equity 176
Franklin India Opportunities 148
DSPML T.I.G.E.R. Reg 121
Franklin India Flexi Cap 119
Franklin India Bluechip 106
JP Morgan India Equity 82
Reliance Equity Advantage Fund Retail 75
DSPML Opportunities 64
Birla Sun Life Mid Cap 64