Street signs: Goldman rejigs IT holdings, Cochin Shipyard buyback, and more

Goldman Sachs in its emerging market (EM) fund added shares of Infosys and HCL Technologies

Goldman Sachs rejigs IT holdings  
 

Goldman Sachs was seen rejigging its holdings in domestic information technology (IT) companies. The US-based asset manager in its emerging market (EM) fund added shares of Infosys and HCL Technologies. On the other hand, it offloaded shares of Tata Consultancy Services (TCS) and Wipro. The move comes at a time when investor sentiment towards the IT pack is weak amid a recovery in the rupee. Infosys and TCS are among the biggest holdings, along with other Asian tech giants such as Samsung, Tencent and Alibaba, in Goldman Sachs’ EM fund.  Samie Modak

Sebi’s plans worry fund managers
 

Defaults by IL&FS caused a lot of trouble for fund managers in the past few months, as they experienced high volatility in inflows. While these schemes saw record outflows in September, inflows in October gave the industry some relief. However, fund managers are now worried about changes that the Securities and Exchange Board of India (Sebi) may bring in to make these schemes safer. “Liquid funds are typically meant for investors who want to put money for the short term. If the market regulator brings in a lock-in period or a similar guideline, corporates will lose interest in putting money in these schemes,” says a fund manager. Most believe that while problems like IL&FS will occur every few years, changing guidelines creates uncertainty among investors.    Joydeep Ghosh

Cochin Shipyard buyback to begin
 

Retail investors of Cochin Shipyard have a chance to cash out part of their holdings at a hefty premium. The shipbuilder’s Rs 200-billion share buyback opens on November 28 and closes on December 11. The buyback price of Rs 455 per share, is at a 20 per cent premium to the current market price of Rs 378. “Given the price differential, it makes sense for retail investors to tender their shares in the buyback. The buyback is possibly in lieu of a dividend,” said an analyst. The acceptance ratio, however, for retail investors will be less than 10 per cent.   Samie Modak