INSUBCONTINENT EXCLUSIVE:
midcap IT stocks, besides a few PSUs, FMCG and metal - mining stocks.
Nifty advanced 1.50 per cent during the month.
The fund house also
offloaded shares of some of the performing stocks in the largecap space, including ICICI Bank (2.50 crore shares) and Reliance Industries
(43.79 lakh) as they hovered around record high levels
The fund sold nearly 25 lakh shares each TCS and SBI and 5 lakh shares in ONGC during the month.
The AMC bought 40 lakh to 1.50 crore shares
each in FMCG major ITC, government-owned GAIL India and Coal India and drug major Sun Pharmaceuticals.
Sun Pharma turned around in Q2 with a
net profit of Rs 1,064.09 crore against a consolidated net loss of Rs 269.6 crore reported for the same period last financial year.
HDFC
PNC Infratech, Neyveli Lignite, Infosys and Adani Ports, Delta Corp, Rites, Indian Hotel, J Kumar Infraproject and Persistent Systems, among
others.
The fund house added 10 to 42 lakh additional shares of these companies during the month.
Watch | Smallcaps don't necessarily grow
faster: Prashant JainIn his recent interaction with ETMarkets.com, Prashant Jain, ED - CIO of HDFC AMC, said the entire market is reasonably
low, which are good for valuations
The government has taken some good steps by cutting corporate tax rates, which would drive profit growth and encourage the manufacturing
added shares of several IT players during the month, including Tech Mahindra (4.19 lakh shares), Firstsource Solution (3.87 lakh shares),
eClerx (0.64 lakh shares), L-T Technology (0.50 lakh shares), HCL Technologies (3,040 shares) and Newgen Software Tech (6,200
shares).
Elsewhere, it bought InterGlobe Aviation (4.84 lakh shares), Mishra Dhatu Nigam (8.15 lakh shares), JSPL (6.53 lakh shares), Bharat
Electronics (7 lakh shares), Power Grid (6.12 lakh shares), Tata Global Beverages (3.75 lakh shares), Bajaj Electronics (7 lakh shares) and
LIC Housing Finance (2.95 lakh shares).
Other largecaps and midcaps HDFC AMC accumulated during the month included JMC Projects (34,600
YES Bank, Kotak Mahindra Bank and M-M Financial Services drew interest of the AMC in the financial space.
Last week, there were reports that
and fair value or below-fair value is a reasonable investment
Smallcaps and midcaps vastly outperformed the largecaps for four years since 2014
That outperformance led to higher valuations
The correction seen in last two years, those excessive valuations have gone
Going forward, as valuations converge, we are not going to see a significant difference in the performance of largecaps, midcaps and
and the Smallcap index 0.02 per cent, suggesting a widening of the market momentum, which had moved only a couple of largecaps till the
previous month.
On the sell side, HDFC AMC sold over 5 lakh shares each in BPCL, HPCL, Federal Bank, Punjab National Bank, Voltas, McLeod
Russel, Avenue Supermarts, Adani Power, ICICI Prudential, Repco Home and Tata Power, during the month.
It completely exited Ashok Leyland,
Biocon, Info Edge, Ircon International, Lemon Tree and SAIL.
Godrej Consumer Products, Muthoot Finance and Sun TV Network were among the
stocks the fund house entered afresh.
