Mutual funds cut stake in auto, tyre stocks in March quarter

They bought an additional stake in newly listed companies like Narayana Hrudayalaya and Dr. Lal PathLabs.

Domestic mutual funds have reduced their stake in tyre, auto ancillaries, textiles, select banks, cement, auto and pharmaceutical shares during January – March, 2016 quarter (Q4).

Mutual funds (MF) cut their stake in Ceat, Apollo Tyres, Ramco Cement, SKS Microfinance, Oriental Bank of Commerce by more than two percentage points while in Eicher Motors, SML Isuzu, Canara Bank, Mastek, TVS Motor Company and Allahabad Bank have seen MF exposures decline between 1 and 2 percentage points.

In the auto ancillaries sector, they reduced their holdings in Shanti Gears, WABCO India, Minda Industries and NRB Bearings, according to shareholding data filed by the companies with the stock exchanges.

The domestic funds invested a whopping Rs 120,000 crore in equities since May 2014, before they turned net sellers last month.

MFs had reported a record net outflow of Rs 10,198 crore in the month of March 2016. They were net buyers of Rs 3,075 crore during Q4, lowest since June 2014 quarter. The Bombay Stock Exchange (BSE) Sensex dipped 3% during the fourth quarter.

However, mutual funds raised their stake in small sized companies like Shaily Engineering, Suprajit Engineering, Deepak Nitrite and Genus Power by five percentage points each. In Pricol, Skipper, Heidelberg Cement, KEI Industries and Westlife Developer, holdings rose between 2-4 pecentage points, as per the shareholding data.

Further, they also bought additional stake in newly listed companies like Narayana Hrudayalaya and Dr. Lal PathLabs by three and two percentage points, respectively, through open market purchases.

An analysis of shareholding pattern of March 2016 quarter for 1,261 companies showed that mutual funds reduced their stake in 310 companies. They increased their holdings in 317 companies, while their stake in the remaining 634 firms remained unchanged.

	Quarter ended stake in %
Name	Mar-15	Jun-15	Sep-15	Dec-15	Mar-16	Chg*
Usha Martin	12.01	12.00	11.99	10.26	4.07	-6.19
Hindustan Media	13.13	12.74	12.49	6.53	1.46	-5.07
Kalyani Invest.	8.71	7.98	7.19	6.54	1.54	-5.00
Eureka Inds.	11.71	11.71	11.71	11.71	7.14	-4.57
The Ramco Cement	11.86	12.43	14.39	20.24	16.09	-4.15
SKS Microfinance	13.07	13.50	15.46	15.89	11.99	-3.90
Jyoti Structures	23.00	23.00	20.93	19.33	15.51	-3.82
CCL Products	9.86	9.09	5.92	5.60	2.54	-3.06
PVR	7.72	8.89	13.99	14.51	11.59	-2.92
Trent	12.08	12.19	14.42	15.05	12.20	-2.85
Suprajit Engg.	2.02	1.98	2.48	2.74	8.39	5.65
Engineers India	2.02	1.91	2.52	3.00	8.49	5.49
Shaily Engineer.	0.00	0.00	0.00	0.00	5.41	5.41
Deepak Nitrite	0.02	0.12	0.34	0.34	5.55	5.21
Genus Power	0.04	0.04	0.04	0.12	4.73	4.61
Westlife Develop	2.46	2.71	4.22	4.57	8.83	4.26
KEI Inds.	0.00	0.12	10.89	12.54	15.78	3.24
Redington India	12.63	13.20	15.82	15.65	18.78	3.13
Heidelberg Cement	0.87	1.09	2.27	3.01	6.07	3.06
Skipper	0.00	0.00	0.02	0.02	2.88	2.86
*Change over December 2015 quarter
Source: CapitalinePlus