INSUBCONTINENT EXCLUSIVE:
Popular beaten-down stocks attracted big money from institutional investors on Dalal Street in October, when the domestic equity market was
facing severe pressure due to rising crude oil prices, a depreciating rupee and uncertainty in the credit market following a default by
ILFS.
For instance, domestic mutual fund houses added some 7.67 crore shares of Coal India even as the stock declined over 7 per cent
between August 29 and October 31
HDFC AMC, ICICI Prudential AMC, and Reliance Nippon AMC held 5.80 crore, 5.67 crore and 3.29 crore CIL shares, respectively, as of October
370.4 crore reported for the year-ago quarter
Cash holdings of domestic mutual funds as a percentage of total asset under management slipped 112 basis points month-on-month to 6.12 per
cent last month from a multi-year high of 7.33 per cent in September, shows a report by East India Securities.
This was the sharpest fall in
HDFC AMC, ICICI Prudential and Reliance Nippon were among the top shareholders among the fund houses in the lender
SBI shares plunged nearly 10 per cent between August 29 and October 31.
BSE Sensex tanked 11 per cent during August 29 and October
31.
Sharekhan says notwithstanding the fact that public sector banks added fewer non-performing assets (NPAs) sequentially, the rate of
slippages is still much higher than normal
However, better-managed PSBs such as SBI and Bank of Baroda continue to show green shoots of improvement on the asset quality front as well
as on other operating metrics.
Telecom major Bharti Airtel, private sector lender Axis Bank, oil marketing player BPCL, IT major Infosys and
PSU lender Bank of Baroda are among other stocks where fund managers bought between 2.50 crore and 5.50 crore shares last month
These stocks have plunged up to 25 per cent in this period.
Oil marketing firms were under pressure in October following a spike in crude
The black gold surpassed over $86 a barrel early October only to slip sharply and hover around $60 a barrel mark this week.
Siddharth
Khemka, Vice President and Head of Research (Retail) at Motilal Oswal Financial Services, said OMCs can be good bets on a long-term basis
It has a very decent cash flow and bulk of its capex is over
crores of shares of beaten-down ICICI Bank, RIL, Vedanta, Tata Power, NTPC, Vodafone Idea, NHPC, Techno Electric and Engineering, Karur
Vysya Bank, HDFC Bank and Adani Ports all through the market downturn.
Barring ICICI Bank (up 4.24 per cent), the other stocks declined up
to 22 per cent in October.
HDFC Securities says it is bullish on Vodafone Idea
Vodafone Idea reported a consolidated loss of Rs 4,973 crore for the September quarter.
HDFC Bank, ICICI Bank and Axis Bank were among the
outperformers in September quarter earnings
investors continued to be upbeat with SIP flows in mutual funds surging 42 per cent year on year to hit Rs 7,985 crore in October
Overall, net inflows to equity mutual funds increased to Rs 14,783 crore last month from Rs 11,251 crore in the previous month.
Kaustubh
Belapurkar, Director, Fund Research, Morningstar Investment said the flows have been steady
They used that cash in the October correction
