>INDIA STRATEGY: Identifying Over-Owned/ Under-Owned Stocks

FII portfolio: U/W on IT & Consumer and O/W on Industrial fall; U/W on energy & O/W on telecom rise


■ During the quarter while FIIs were net sellers, domestic MFs & LIC were net
buyers. FII holding in Sensex has come down marginally.


■ FIIs were positive on defensives like Consumers & Telecom whereas they sold across most of the other sectors like Financials, Metals and Industrials. FII ownership in SBI is at all time low whereas Industrials has become an U/W sector for the first time due to this selling.


■ Financials, the favorite sector for FII, saw significant selling during the quarter bringing down the O/W marginally. Industrials was another sector sold by the FIIs resulting in reduction in its O/W. The Software sector was the biggest sector bought by the FIIs, followed by Consumers, resulting in change in their respective O/W and U/W.


■ In terms of long term trends, while the underweight of energy continues to come down, Industrials has become an underweight sector. On the other hand, consumers are no longer an underweight sector due to consistent buying done every quarter. Also Financials has seen its weight come down. Within Banks while FIIs have sold names like SBI, ICICI, Axis, they have increased exposure in Kotak. Any surprise in these names can reverse the trend.


■ Key buys in this quarter were: Infy, ITC, TCS, HDFC, HUL and Wipro . Key sells were: ICICI Bk, L&T, Coal India, Axis Bank and RIL.. 


Domestic MF Portfolio: U/W on metals fall; O/W on Industrials rise
■ Domestic MF portfolio is in stark contrast with that of FIIs, with Industrials being major O/W sector, sector where FIIs are marginally positive. Consumer is another sector where domestic MFs are heavily O/W in contrast to FIIs who are not. They are also U/W Financials where FIIs are O/W. However, on the similar lines of FIIs, domestic MFs are also U/W commodities.


■ In contrast to FIIs, MFs bought Metals and sold consumer & telecom names. On the similar lines of FIIs, MFs also bought software and cement names.


■ During the quarter mutual funds bought Software, Industrials, Metals & Energy and sold consumers &Telecom.


LIC net buyer
On the similar lines of MFs who were buyers, LIC was also a net buyer. LIC bought Financials (SBI, HDFC Bank), Utilities (Tata Power) and Energy (RIL). LIC sold Cement (Ultratech, ACC), Software (Infy) and Telecom (Bharti).


To read full report: INDIA STRATEGY
RISH TRADER