Funds are getting wary of Sensex companies

Written by Pradip Kumar Dey | Mumbai, Apr 26 | Updated: Apr 27 2008, 07:12am hrs
Mutual fund houses, including UTI, have been lowering their stakes in most of the Sensex companies. A detail analysis of 25 Sensex companies reveal that fund houses have reduced their holdings in around 14 firms.

The most significant reduction of fund house holding, in percentage terms, was seen in the case of Ranbaxy Labs, where the share dropped from 5.07% in December 2007 to 3.03% in March 2008. Others that saw a reduction are Grasim Inds, where fund holdings were reduced from 10.15% to 8.71%, SBI (from 5.72% to 4.41%), Maruti Suzuki (from 7.59% to 6.52%) and M&M(from 6.18% to 5.17%).

But fund houses have been steadily increasing their stake in established infrastructure-related companies. Holdings in L&T increased from 14.71% to 15.87%, in ACC from 2% to 3.13%, in Tata Steel 4.24% to 5.07% and in HDFC from 2.8% to 3.61%, in the same period.