Backside fishing? Mutual funds lapped up 7 shares in bear grip in December

NEW DELHI: Mutual fund managers appear to be backside fishing for shares, suggests the most…

NEW DELHI: Mutual fund managers appear to be backside fishing for shares, suggests the most recent knowledge as their prime bets final month included many beaten-down counters. Among the many 30 prime picks of mutual funds in December throughout market cap, 19 have given detrimental returns to the tune of 6-60% within the final one 12 months.

Apparently, of those 19 shares, seven which can be in bear grip have additionally fashioned a part of home institutional traders’ prime picks. These embody FSN E-Commerce Ventures (

), , , , LTIMindtree, and .

It appears the establishments are attempting to convey their common value down as a lot of the shares they’ve been shopping for have been underperformers and extra importantly, the outlook doesn’t give many causes for a contemporary purchase, unbiased market knowledgeable Ambareesh Baliga advised ETMarkets.com.

“Nykaa has disenchanted traders with their efficiency and extra just lately with sure company actions which border on governance questionability.

, too, falls in the identical basket and was in any case an overhyped and costly IPO. Vodafone now appears to be within the sundown zone and LTI, too, doesn’t enthuse confidence among the many IT sector shares. The one ones which appear worthwhile are PB Fintech and IRCTC on this complete pack,” Baliga added.


The brand new-age counters — Nykaa, Paytm and PB Fintech — have misplaced between 40-60% within the final one 12 months as tightening liquidity circumstances dented demand for costly progress shares whereas issues round profitability additional dented their attraction. MFs held 1,215 lakh Nykaa shares value Rs 1,881 crore in December as in opposition to 1,635 lakh shares value Rs 949 crore in November. MFs purchased 18 lakh shares of Paytm and 37 lakh shares of PB Fintech final month.

In the meantime, they purchased 644 lakh Voda Thought shares whereas their complete holding in December was value Rs 280 crore. This inventory has cracked over 43% in final one 12 months.


Usually touted as “sensible cash”, the query stays if their shareholding sample holds cues for retail traders.

Commenting on the outlook for these shares, Kranthi Bathini stated shares like LTIMindtree and IRCTC may be underperforming over a while however they provide lots of margin of security. “This may be a rationale that will have influenced fund managers to select stake in these counters,” Bathini advised ETMarkets.com.

As for the new-age tech shares, Bathini believes that traders have to see when these firms turn into worthwhile. “Buyers can wait and see how revenues are rising however finally their profitability issues. As soon as these firms turn into worthwhile, traders can decide these shares,” he stated.

“Among the many new age firms, these that are on observe to be money optimistic are those which can enthuse curiosity. And people that are money optimistic like Nykaa, whose IPO was based mostly on that premise, have to scale up sooner, and that progress also needs to mirror within the bottomline,” stated Baliga.

(Disclaimer: Suggestions, recommendations, views and opinions given by the specialists are their very own. These don’t characterize the views of Financial Instances)