MFs fancy UTI AMC
Several MF houses bought shares of peer UTI Asset Management Company during the March quarter. According to disclosure of the shareholding data, Mirae Asset MF and ICICI Prudential MF hiked their stake in the company by 44 bps and 195 bps to 5.56% and 4.61%, respectively. Invesco MF, Tata MF, Canara Robeco and Sundaram MF, too, have reported an increase in holding in UTI AMC. “UTI AMC is exhibiting multiple positive business indicators, such as gains in market share in equity segment as well as flows, SIP as well as folio additions. Cost reduction programme undertaken by the company and hike in pension fund management charges are strong earnings drivers ahead,” said ICICI Securities in a note last week. UTI AMC got listed in October 2020 but had slipped 15% below its issue price. However, currently it trades 15% above the IPO price.
Analysts positive on road builders
The stocks of road engineering, procurement and construction players are attractively poised as their business has seen relatively limited impact of lockdowns, say analysts. There has been no mass exodus of labour like Q1FY21, as sites are operational and workers continue to earn wages and even productivity incentives, while also having access to adequate medical facilities. Moreover, there is a strong order pipeline in FY22, JM Financial says in a note. Firms like PNC Infratech, KNR Constructions, and Ashoka Buildcon are the companies where the brokerage sees sharp upside potential. But with Covid-19 spreading into rural areas, there can be another surge in migration if labourers’ families get infected and require assistance.
FTSE cuts Vedanta weighting
FTSE Russell has trimmed the weighting of Vedanta in its global indices called as “Russell RAFI” index series. The move follows a sharp decline in free float market capitalisation in the commodity major. According to analysts, the stock could see selling worth nearly Rs 300 crore as funds realign their holdings. The adjustment will take place on May 4. Following a voluntary open offer, the promoter stake in Vedanta has increased to 65.18% from 55.1%. Shares of Vedanta have rallied 60% this year, outperforming the BSE Metal index which is up 54 per cent.