Mutual Fund offload shares worth $1.2 bn
Domestic mutual funds seem to have taken a bearish stance in the stock market during the last quarter, when they offloaded shares worth about USD 1.2 billion (Rs 6,625 crore) despite a significant uptrend in the overall market and impressive buying by foreign investors.
Individually, sectors like financials and consumer were among the worst hit in terms of net-sale by mutual funds, while net purchases were made in stocks from industrial and consumer staple segments.
According to global research report by BofA-Merrill Lynch, domestic MF has emerged as net sellers during July-September quarter 2012 with an outflow of USD 1.19 billion compared to a net inflow of USD 50 million in the previous quarter (April-June 2012).
The top stocks sold by domestic mutual funds are ICICI Bank, Tata Consultancy Services (TCS), Power Finance, Reliance Industries (RIL) and ONGC, while most bought shares are Cairn India, Tech Mahindra, Petronet LNG, Canara Bank and HDFC Bank.
Individually, domestic MFs lowered its exposure to companies like ICICI Bank with sale of shares with an estimated USD 190 million, USD 100 million each in RIL and
ONGC, USD 60 million in ITC, USD 50 million in Jindal Steel, USD 40 million each in BPCL, BHEL, HUL and Tata Steel.
On the other hand, domestic mutual funds major investment during the quarter included Cairn India (USD 240 million), Canara Bank (USD 40 million) and HDFC (USD 30 million).
The report said industrial and consumers staples are one of the biggest overweight sector for domestic MF's, while they are underweight on
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