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Prashant Jain’s love for PSUs continues; interest in govt-owned companies evident in December purchases

The AMC’s interest in PSUs is evident as four out of five top stocks where the mutual fund house increased its stake during the calendar year 2019 were public sector shares.

, ET Online|
Jan 10, 2020, 05.03 PM IST
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Prashant Jain's love for PSUs continues, shows the December portfolio data of the AMC. HDFC Mutual Fund, the biggest AMC holding assets worth Rs 3.82 lakh crore, added sizeable chunk of the shares of government-owned companies in its portfolio in the last month of the year gone by.

HDFC Mutual Fund added 1.29 crore shares of Power Grid Corporation of India in December 2019. It also added 1.17 crore of Coal India and 1.01 crore shares of Power Finance Corporation in December. The AMC’s interest in PSUs is evident as four out of five top stocks where the mutual fund house increased its stake during the calendar year 2019 were public sector shares. The top five stocks were NTPC (added 9.48 crore shares), Coal India ( 8.24 crore shares), ITC (8.17 crore shares), GAIL (8.13 crore shares) and Bharat Electronics (4.84 crore shares), shows data from Ace MF.

The mutual fund house also lapped up 1.20 crore additional shares of Ambuja Cements in December. During the year, the AMC added 2.31 crore shares of the stocks.

Prashant Jain let go stocks of some bluechip companies in the last month of the year gone by. The AMC sold 43.77 lakh shares of Reliance Industries, 28.37 lakh shares of TCS and 24.27 lakh shares of ICICI Bank. The AMC sold substantial 2.50 crore shares of ICICI Bank in November last year.

ICICI Bank share price has gone up by 48% in 2019 and Reliance Industries delivered 35% returns in 2019. In the same year, the broader market index Sensex rose by 14%. TCS grew by 14% in 2019.

The company also reduced its stake in Bharat Petroleum Corporation by selling 39.72 lakh shares and Hindalco Industries (-37.72 lakh shares).

ICICI Bank is the largest equity holding in terms of market capitalisation for the AMC. The mutual fund house owns Rs 11,627 crore of ICICI Bank shares as on December end last year, followed By State Bank of India (Rs 10,209 crore), Larsen & Toubro (Rs 8,241 crore), Infosys (7,993 crore) and Reliance Industries (Rs 7,781 crore).

HDFC Mutual Fund completely sold off Mcleod Russel India and Transformers & Rectifiers (India) from their portfolio in December.

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