Skip to main content

MUTUAL FUNDS EXPOSURE TO IT STOCKS FALL



Mutual fund managers' exposure to the software sector has dropped to Rs 24,315 crore in March, after touching a record high in the preceding month, primarily on account of investors' concerns over the impact of appreciating rupee on exporters.
According to latest data available with market regulator Securities and Exchange Board of India (Sebi), investment by the mutual fund industry in software stocks stood at Rs 24,315 crore as on March 31, accounting for 11.92 per cent of their total equity assets under management (AUM) of Rs 2.04 lakh crore.
In comparison, the fund managers' exposure to software stocks was at an all-time high of Rs 28,784 crore in February.
However, investment growth in software stocks by the industry's equity fund managers has risen from Rs 19,196 crore in March 2013 to Rs 24,315 crore in the corresponding month this year. A mutual fund is a vehicle made up of a pool of funds collected from investors that buys and sells securities such as stocks, bonds and money market instruments. Market participants attributed the decline in investment in IT shares by mutual fund managers to appreciating rupee and expensive valuations. While some experts said that rising Indian currency is a cause for concern but they are comfortable with the currency being hovering around 60 levels.
During the month of March, IT stocks under-performed broader market by falling over 10 per cent, while the BSE's benchmark Sensex rose by nearly 6 per cent. In March this year, mutual funds have investment of Rs 40,293 crore in the banking stocks, which was the highest among all sectors. Besides, pharma stocks accounted for Rs 16,066 crore, while consumer non-durables attracted Rs 12,947 crore and petroleum products at Rs 10,909 crore.

Comments

Popular posts from this blog

JIO TARIFF CICK FOR TELECOM STOCKS

Telecom stocks today surged up to 8 per cent after the recent increase in Reliance Jio tariffs, which is largely seen as positive for the sector. Shares of Bharti Airtel jumped 4.99 per cent to close at Rs 497.50 on BSE. Bharti Airtel was the biggest gainer among the 30-share index components. The scrip of Idea Cellular soared 7.74 per cent to end at Rs 98.15 and Reliance Communications zoomed 7.60 per cent to Rs 17.70. Reliance Jio made its service dearer by about 15 per cent for its popular 84-day plan at Rs 459 from October 19, under which subscribers get 1GB 4G data at high speed per day. The company restructured its various schemes by reducing their validity period. The recent increase in Reliance Jio tariffs will increase its average revenue per user by up to 20 per cent and is a positive for the telecom sector, which is seeing a rapid consolidation, says a Philip Capital report. Established telecom sector players have seen huge reduction in their margins. Idea Cellular and Reli…

STOCK MARKET WELCOME NEW YEAR WITH LOSS

Sensex drops 244 pts
A late sell-off in auto, banking and IT shares pulled back the benchmark BSE Sensex from record high level to close down by 244 points, its biggest single loss in past one month, on the first trading day of 2018. Investors preferred to book profits at record highs amid concerns over fiscal slippages and rising crude oil prices and absence of cues from global markets which were closed for the New Year holiday. The benchmark Sensex touched a low of 33,766.15 before settling lower by 244.08 points, or 0.72 per cent, at 33,812.75. This is the biggest single-day fall since December 1 when the index had lost 316.41. The 30-share index had closed at an all-time high of 34,056.83 in the last session of 2017 on Friday. Also, the 50-share Nifty cracked below the 10,500-mark to hit a low of 10,423.10 before settling 95.15 points, or 0.90 per cent down at 10,435.55. Stocks opened on a weak note and remained range-bound for the better part of the day but an intense sell-off in…

NIFTY EARNINGS FLAT IN 2018

UBS Cautious Note

Projecting zero returns from the Nifty, Swiss brokerage UBS has projected a 10 per cent cut in its index target at 10,500 for calendar 2018, even as it remains positive over the long-term. "Top-down, we forecast Nifty earnings growth will recover from 9 per cent in fiscal 2018 to 13 per cent in 2019, but driven largely by financials," the brokerage said in a report. "However, earnings growth is likely to disappoint against consensus forecast of 22 per cent growth for fiscal 2019, implying a 10 per cent cut," it added. Accordingly, the brokerage estimates "no returns from the Nifty in 2018" and has set the index target at 10,500 for this December. The report noted that a sharp earnings recovery, with continued robust macro stability appears priced in by the markets. "A sharp earnings recovery appears priced in. The markets are already close to our 2018 target, given optimistic fiscal 2019 consensus earnings expectations, which build …