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Mutual Funds offload shares worth $1.2 bn in Q2; financial and consumer stocks hit most: Report

By Religare

At a time when foreign investors are bullish on India and have increased their stakes in many companies, domestic mutual funds turned out to as net sellers during the second quarter ended September 2012.

According to data compiled by BofA-Merrill Lynch, domestic MFs have offloaded shares worth almost USD 1.2 billion during Jul-Sep 2012 quarter, compared with net inflow of USD 50 million during the previous quarter.

Stocks from the financial and consumer sectors were among the worst hit while stocks from industrial and consumer staple sectors emerged as most bought by mutual funds during the period, said the report.


Domestic Mutual Funds trimmed their holdings in companies like ICICI Bank with sale of shares worth USD 190 million, followed by RIL with USD 100 million, ITC with USD 60 million, Jindal Steel with USD 50 million and so on.

"Cement saw an increase in its underweight due to inclusion of Ultratech in Nifty resulting an increase in sector weightage in the index. Underweight in metals and mining reduced due to exclusion of Sail etc from Nifty index thereby reducing the sector weightage in the index," the report said.

As against MFs, FIIs net invested around Rs 40,000 crore in the Indian stock market during the third quarter ended September 2012, on back of reforms announced by government during the month of September.

Story first published: Monday, November 19, 2012, 9:30 [IST]
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