look news india
Ahmedabad: Mutual funds booked profits in public sector undertakings (PSU) shares even before the general election results. Mutual funds were net sellers in many PSUs in May, while in the same month they added a record Rs. 47,600 crore.
According to the Nuvama Alternative and Quantitative Research report, Canara Bank topped the list of most sold stocks in May. About Rs. 2,270 crore was withdrawn from it. The list of 30 most sold stocks includes nine PSUs, while there were only four in April. Of these, nine stocks were disinvested worth Rs. 9,570 crore which includes Bharat Electronics, PNB and GAIL among others.
In May, the only PSU, IRFC, saw the highest buying and the estimated investment was Rs. 860 crore. Most PSUs have seen significant growth in recent years and some of them have more than doubled in value in the last one year. The BSE PSU index has gained 102 per cent in the one-year period ending May 31, 2024.
The index rose to 7.7 on June 3 following the exit poll projections, but fell nearly 16 per cent during the post-result sell-off the next day. However, the index has since recovered most of its losses.
At the fund house level, HDFC and Quante Mutual Fund were among the top sellers. Quante completely exited four stocks last month and these were PSU companies PNB, Bharat Electronics, GAIL and Hindustan Copper.
Private bank stocks (most of which have underperformed in recent years) saw the most buying last month. HDFC Bank and Kotak Mahindra Bank top the buying list.
