PMS run by Porinju, Maheshwari & top fund houses all bled in September
As the tide turned in the market after a long bull run, funds managed by portfolio management services (PMS) of renowned investors took a big hit in September.
BSE Sensex, BSE Midcap index and BSE Smallcap index slipped 6.25 per cent, 12.54 per cent and 16 per cent, respectively, during the month.
Kochi-based investor Porinju Veliyath’s PMS witnessed a 20 per cent drop in September, according to data available on the Sebi website. The fund, managed by Veliyath-owned Equity Intelligence, had gained 6.33 per cent and 3.70 per cent in August and July, respectively.
In a recent interaction with ETNow, Porinju said investors should not forget that such fearful situations, corrections and crashes have happened many times in the past and every time the market has bounced back. So, it is not end of the world.
“This is a typical market panic. We have gone through many such corrections and cycles. Every cycle is a learning opportunity for investors. Such fearful corrections have happen in the past and the market has always bounced back from these levels,” he said.
The Basant Maheshwari Wealth Adviser’s PMS slipped 21.50 per cent in September. The fund, managed by Basant Maheshwari, an investor of repute, delivered 2.4 per cent and 15.90 per cent returns in August and July, respectively.
A PMS managed by Motial Oswal AMC slipped 12 per cent last month. However, due to some glitch on the regulator’s website, it was showing a positive return of 12 per cent, the company spokesperson confirmed to ETMarkets.com.
Data available with the market regulator showed other PMS funds run by Enam AMC, ASK Investment Managers, Kotak Mahindra AMC, ICICI Prudential AMC, Old Bridge Capital Management, Sundaram Asset Management Company, Reliance Wealth Management, 2Point2 Capital Advisors and ValueQuest Investment Advisors all slipped between 7 per cent and 17 per cent in September.
The selloff in stocks has intensified this month and dragging the 30-share index some 4 per cent so far. Analysts have attributed this correction to sustained withdrawals by foreign portfolio investors (FPIs) amid a falling rupee, rising crude oil prices and subdued global cues. The BSE Sensex plunged over 1,000 points in early trade on Thursday, while NSE’s Nifty breached the important 10,200 mark.
Dheeraj Singh, Head of Investments of Taurus Asset Management said while most of the earlier falls was attributed to domestic factors – be it the IL&FS effect and fears of contagion thereon, or the ever increasing fuel prices due to the combined effect of weakening rupee and rising global crude prices – the reasons for Thursday’s fall were clearly global with the US markets falling sharply after President Trump’s acerbic comments against the Fed and the consequent sharp fall in all major Asian markets.
Two reports published on the eve of the annual IMF-World Bank meeting in Bali, Indonesia, have also contributed to market jitters.
An IMF report projected the world economy to grow at a slower pace than what was expected earlier (3.7 per cent vs the earlier projection of 3.9 per cent) – thanks to global trade war and the forthcoming sanctions on Iran, while a World Bank report highlighted the risks of extremely high debt levels (public and private) in the major economies of the world.