Private Players Lift Bluechip Counters

Private sector mutual funds triggered a rally in blue chip stocks and side counters during October-November.

The equity portfolios of eight major private sector mutual funds for October show that most of them have picked up fundamentally strong low value stocks last month. Technology stocks were the most favoured as large purchases were seen in HCL Technologies, Aztech Software & Technologies, Polaris Software, MphasiS BFL, NIIT, Infosys Technologies, Wipro and Moser Baer.

Among old economy stocks, the funds picked up ACC, ITC Bajaj Auto, Mahindra & Mahindra, Hero Honda, Dr Reddy's Laboratories and Bharat Electronics. Financial institutions such as HDFC and ICICI Bank were also in the buying list.

The funds, however, executed put options in Zee Telefilms, Sonata Software, Larsen & Toubro, Grasim, Tisco, Reliance Industries, Global Trust Bank, ICICI and Digital Global Soft.

Pioneer ITI picked up 7.42 lakh shares of ACC for its Bluechip scheme. ACC, which was hammered below Rs 100 in October, is at present hovering around Rs 160.

Alliance Mutual Fund and Birla Mutual Fund had executed call options in HCL Technologies, while Pioneer ITI had carried out a put option in the stock. Alliance picked up 7.92 lakh shares for its New Millennium Fund, while Birla Mutual Fund bought seven lakh shares for its Birla Advantage and Balanced Schemes. Pioneer ITI reduced holding in HCL Technologies by 8.24 lakh shares.

Alliance Mutual picked up Aztec Software & Technologies at around Rs 30 in October. Equity, growth and tax-saving schemes of Alliance purchased 3.50 lakh shares of Bajaj Auto in October.

Private sector mutual funds also increased exposure in ITC and HDFC by 3.43 lakh shares each, Polaris Software by 3.14 lakh, Mahindra & Mahindra by 2.85 lakh shares and Hero Honda, NIIT and Bharat Electronics by 1.40 lakh shares each.

Alliance opted to exit completely from Zee Telefilms by selling 20.08 lakh shares and reduced its exposure in Larsen & Toubro by selling nearly seven lakh shares. Alliance and Pioneer ITI sold 16.42 lakh shares of Sonata Software, while Alliance and DSP Mutual Fund together reduced exposure in Reliance Industries by 4.78 lakh shares.