what the fund manager did during market crash?

As the stock market is having everyone worried, it was interesting to know what the fund managers did during this period.

The banking and financial services stocks were in good demand. The fund managers saw buying opportunity in ICICI Bank, HDFC, Axis Bank, Federal Bank and Canara Bank. Interestingly country's largest bank -the State Bank of India - failed to find favour with the fund managers. However, SBI is still part of 142 mutual fund schemes. The BSE Bankex was down by around 12 per cent in January.

The fund managers also did buying in select infrastructure companies like Unitech and Madhucon Projects. Balkrishna Industries, which has interests in paper, textiles and tyres, was also among the most bought. HDFC fund family is particularly fond of this company and figures in the portfolios of HDFC Balanced, HDFC Long Term Advantage, HDFC Equity, HDFC Prudence, HDFC Multiple Yield Plan 2005 and HDFC MIP Long Term.

In the sellers list cement and technology stocks were offloaded. Funds diluted their holdings in Grasim, JP Associates and India Cements from the cement pack and Infosys, CMC and NIIT Technologies from the tech sector. Last month JP Associates was among the most bought on the expectation that it will demerge JP Power Ventures from itself and would float an IPO. However severe correction has put several public floats on hold.

Tractor maker Escorts was hammered the most with more than 62 lakh shares of it being sold. The stock, which was part of the four funds in December 2007, is now held by just three funds - JM Auto, Kotak Equity Arbitrage and JM Arbitrage Advantage. Reliance Growth exited the stock completely in January this year.



WHAT FUNDS BOUGHT
Value * Shares Bought No. of Funds
Large Cap Stocks (Rs cr) (in lakhs) (Jan-08)
ICICI Bank 514 75.16 189
HDFC 401 14.59 88
Axis Bank 225 0.4 60
Cairn India 125 118.17 52
Unitech 98 37.34 46
Mid Cap Stocks
Federal Bank 143 55.28 31
Hero Honda Motors 120 17.97 23
Madhucon Projects 110 11.69 25
Bombay Dyeing & Mfg. Co. 102 13.88 28
Canara Bank 79 28.6 25
Small Cap Stocks
Sunil Hitech Engineers 23 7.34 3
ETC Networks 23 10.2 3
Balkrishna Industries 18 0.84 9
Country Club (India) 15 2.5 5
NIIT 14 13.66 8
*Increase in Investment
Based upon Dec-07 and Jan-08 portfolios


WHAT FUNDS SOLD
Value * Shares Bought No. of Funds
Large Cap Stocks (Rs cr) (in lakhs) (Jan-08)
Grasim Industries 699 5.89 114
Jai Prakash Associates 655 34.9 117
Bharti Airtel 632 30.74 135
State Bank of India 601 11.59 142
Infosys Technologies 431 8.58 111
Mid Cap Stocks
Crompton Greaves 416 10.77 81
Sesa Goa 361 4.55 60
Bharat Electronics 316 3.8 46
Hindustan Petroleum Corpn. 266 37.81 32
India Cements 258 33.56 30
Small Cap Stocks
Elecon Engineering Co. 180 8.31 28
Escorts 104 62.16 3
Chambal Fertilisers & Chem. 85 6.13 14
CMC 84 0.6 8
NIIT Technologies 81 23.57 19
*Decrease in Investment
Based upon Dec-07 and Jan-08 portfolios