Market pick-up brings no relief to fund managers - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Market pick-up brings no relief to fund managers

Apr 6, 2000

The 54-point pick-up in the BSE Sensex has brought no relief to fund managers, who are still concerned about the persistent fall in the prices of Infotech stocks which constitute a major portion of their portfolios. Major gains yesterday were posted in commodity stocks like ACC, Kesoram, Ballarpur and Sterlite, all of which hit the upward circuit.

IT/Convergence/Media giants like Satyam Computers, NIIT, Aptech, SSI, Pentafour Software, Zee Telefilms, HFCL, Global Tele, HCL Infosys all hit the downward circuit. The 3.7% rise in Infosys came as a welcome relief, but won't compensate for the damage done by the other (IT) stocks to their portfolios.

As investors flock to redeem their units, fund managers may have to offload their IT holdings at lower prices. As commodity stocks steal the limelight from IT, fund managers find themselves unable to exploit the opportunity to book profits as their holdings in commodity stocks are insignificant.

If the upward trend in commodity stocks persists, maybe investors should look at funds with higher exposure to cement/steel/metal stocks. However, the smart investor may want to enter into IT funds now, which are looking more attractive.


Equitymaster requests your view! Post a comment on "Market pick-up brings no relief to fund managers". Click here!

  

More Views on News

Sorry! There are no related views on news for this company/sector.

Most Popular

How the 8-Year Cycle Can Help Identify Multibaggers (Fast Profits Daily)

Sep 11, 2020

This is how you can apply the greed and fear cycle in the market to pick stocks.

Why am I Recommending Caution? (Fast Profits Daily)

Sep 9, 2020

This is why I have changed my short-term view on the market.

Why We Picked This Small-cap Stock for Our Hidden Treasure Subscribers (Profit Hunter)

Sep 17, 2020

This leading household brand will profit big time in a post covid world.

This Could Be the Best September for Auto Stocks (Profit Hunter)

Sep 11, 2020

Here's why I think this month could be a great for auto stocks.

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms

MARKET STATS