Equity mutual fund managers have divested Rs 13,183 crore during July-September 2010. The figure is significantly higher than the previous quarter (Rs 2,763 crore). They have reduced holdings in Sensex companies during the second quarter in as many as 19 Sensex companies on the back of redemption pressure. Retail investors have been booking profits on the back of a rise in equity market valuations.

In all, MF houses held 238 crore shares of Sensex companies as on September 30,2010, against 186 crore shares on June 30,2010.

Hero Honda Motors saw the highest drop in MF holdings.

Kishor P Ostwal, CMD of CNI Research said: ?Investors have been redeeming in the second quarter and mutual fund houses offloaded bluechip companies to arrange for such redemption.?

He said even corporate houses tend to withdraw surplus funds from mutual funds if they need it for their capital expenditures.

According to an analysis of shareholding pattern of 30 Sensex companies, 19 saw a decrease in their MF holdings in September quarter compared with the previous quarter.

Reliance Infra, Tata Power, ACC, HDFC, Reliance Industries, HDFC Bank, Hero Honda Motor, Reliance Communications and JP Associates were among them.

The second highest decrease in MFs? stake was registered by Tata Power. The MFs? share in Tata Power decreased from 6.16% to 4.70% in the second quarter. On the other hand, out of the 30 stocks, 10 companies saw an increase in MFs? stake. There is no change in MF holdings in case of Maruti Suzuki.

Highest increase in MFs? stake was seen in the case of DLF followed by Tata Motors and Tata Steel.

The MFs? stake in SBI decreased to 4.08% on September 30, 2010, from 4.47% on June 30, 2010. HDFC Bank?s stake decreased from 3.98% to 3.25% during the said period.

As compared with the last quarter, public sector giant ONGC saw MFs? holdings in the firm going up marginally from 2.33% to 2.34%. On the other hand, private sector giant Reliance Industries? MF holdings decreased from 2.60% to 2.02% during the period.

The average share of MFs? stake in all the 30 Sensex companies decreased from 4.20% to 4.14% during the period.

The top-five companies, according to the share of MFs? stake as on September 30, 2010, are ITC, Larsen & Toubro, Bhel, ICICI Bank and Reliance Infrastructure.