In July, mutual fund managers maintained their exposure to defensives like pharmaceuticals and technology while handpicking shares of companies that could beat expectations over the next few quarters. Some of the funds booked profits in NSE -0.39 percent of Reliance Industries, the best-performing blue-chip since March 23, when the Nifty hit a four-year low.
Four stocks that attracted the top five MFs-
WIPRO – Current Market Price (CMP) -Rs. 277/-
Bought by: HDFC MF Market Capitalization: Rs 1,58,290 crore
The main explanation for fund managers’ great interest is that Wipro traded cheaper than their peers. Also, contrary to expectations from the Street, the company’s operating margin rose sequentially to 140 basis points and in the June quarter to 60 bps year-on-year. This improving financial results inspired analysts as well as managers. Furthermore, improving domestic cyber defense capabilities is one of the few businesses that could theoretically benefit from the focus.
INDIAMART INTERMESH – Current Market Price (CMP)-Rs.2978/-
Purchased from: Aditya Birla SL MF Market cap: Rs 8,618 crore
Indiamart is drawing fund managers through a rush to digital. They believe this company is a major beneficiary of the lockdown because stressed SMEs will shift business online increasingly, taking a business to platforms like Indiamart. The company is the biggest online B2B marketplace with an online B2B classified market share of 60 percent. It allows for two-way interactions: suppliers can post listings, and buyers can also post quotation requests. The site gets 600 million visitors per month.
HDFC LIFE INSURANCE- Current Market Price (CMP)- Rs.599.65
Bought by: market cap SBI MF: Rs 1,21,090 crore
To many fund managers, a good product mix, strong parentage, and high results make this a sustainable growth tale. Improved demand for defensive goods would serve as acatalystfor growth and the business with the highest proportion of security stands to benefit.
The Company’s improving financial results inspired analysts as well as managers. Also, the improved domestic cybersecurity technologies are one of the few businesses that can theoretically benefit from the Government’s emphasis.
BALAKRISHNA INDUSTRIES – Current Market Price (CMP) – Rs.1385
Purchased by: Nippon MF Cap: Rs 26,773 Crore
The specialized tyre-manufacturing company that exports 90 per cent, particularly during the lockdown process, benefited from off-highway tyre-demand in the European Union(EU) agriculture sector. The firm also continues to benefit from strong demand in India for Agri-tyres. Agri-tyre sales rose in June by 44 per cent year-on-year and 32 per cent month-on-month. For this reason, both managers and analysts remain bullish on the stock.