Funds don't break faith with Tata firms

Tata group has been in sharp focus ever since the battle broke out between Ratan Tata and Cyrus Mistry on October 24. India's fund managers have a sizeable exposure to Tata group companies. Entities like Tata Motors and its differential voting rights shares, Tata Consultancy Services (TCS), and Tata Steel have gained importance in fund managers' schemes. Several Tata shares have come under pressure over the last fortnight. Despite the turmoil, exposure of schemes to these stocks has remained stable. For instance, Birla Sun Life Frontline Equity Fund lapped up nearly three million more shares of Tata Motors and its investment as on October 31 stood at Rs 605 crore against Rs 446 crore a month ago. Overall investments in Tata Motors went up. In TCS, overall investments came down by Rs 300 crore. Shares of TCS have been losing steam all through October. Axis Long Term Equity Fund sold 300,000 shares of TCS. In Tata Steel, overall allocation of equity funds went up, month over month, by Rs 300 crore. In October, HDFC Prudence Fund lapped up two million shares of Tata Steel, taking the investment to Rs 451 crore in October-end compared with Rs 345 crore in September.