Is it time to enter sectoral funds? - 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?  

Is it time to enter sectoral funds?

May 5, 2000

Thatís what a lot of investors would like to know after the sops advanced to the pharma and software sectors by Yashwant Sinha in his latest budgetary amendments, combined with the rise in pharma and software stocks yesterday (4th May 2000).

Open-ended IT funds NAV (Rs) 1-week 1-month Since incep.
Pru ICICI Tech. Fund (Gr) 6.15 -5.1% -29.6% -37.5%
Kothari Pioneer Internet Opport. (Gr) 8.24 -5.8% -10.4% -14.0%
Sun F & C Emerging Tech. (Gr) 7.21 -8.7% -15.8% -15.8%
Birla IT Fund (Growth) 21.07 -9.1% -24.3% 17.0%
Chola Freedom Technology (Cum) 16.09 -11.2% -20.9% 22.2%
Tata IT Sector Fund 11.89 -11.6% -30.3% 26.3%
Kothari Pioneer Infotech (Gr) 29.27 -12.8% -26.0% 193.9%
IL&FS eCOM Fund (Gr) 6.29 -13.7% -39.9% -53.9%
Magnum Sector Funds - IT 15.86 -14.1% -35.7% 122.3%
Alliance New Millennium Fund (Gr) 8.25 -14.2% -33.0% -46.0%
UTI Sector Fund - Software 23.82 -15.2% -34.0% 68.5%

Yesterday was a big day for key software and pharma counters as the BSE Sensex zoomed 218 points. And even as I write this, software (Satyam, NIIT, Infosys) and pharma (Dr Reddys, Ranbaxy, Cipla) stocks are witnessing significant buying interest. Add to this the fact that pharma and software funds are at all-time lows. So is it time to enter pharma and software funds?

Open-ended Pharma funds NAV (Rs) 1-week 1-month 12-month Since incep.
Kothari Pioneer Pharma (Gr) 9.51 -5.4% -12.6% 4.4% 1.8%
Magnum Sector Funds - Pharma 8.81 -8.3% -19.2% 0.0% -12.5%
UTI Sector Fund - Pharma 9.54 -9.2% -19.3% 0.0% -20.0%

Not if you want to weigh the cons with the pros. Yashwant Sinhaís budgetary amendments canít distract one from some other fundamental issues that may yet continue to plague the markets. For one, the border tension with Pakistan is not resolved as yet. There are concerns of a sub-normal monsoon in the current year. And the meltdown on the NASDAQ with its repercussions on the Indian markets is also a matter of some anxiety. So is it time to enter pharma and software funds?

Investors may want to wait till next week till the picture becomes a little clearer regarding the concerns (border tensions, NASDAQ) outlined above. Then we will know for sure if the current rally is just a flash in the pan.


Equitymaster requests your view! Post a comment on "Is it time to enter sectoral funds?". Click here!

  

More Views on News

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

Most Popular

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.

My Top Stock to Buy in this Market Selloff (Profit Hunter)

Sep 22, 2020

The recent correction offers a great opportunity to buy this high conviction smallcap stock.

Can the Nifty Fall to 10,200? (Fast Profits Daily)

Sep 24, 2020

The Nifty has reached an important support level today. If it breaks then we could see further downside.

What Do the Charts Say About Buying Smallcaps Now? (Fast Profits Daily)

Sep 18, 2020

Everyone seems to be excited about buying smallcaps now...but is it the right thing to do? What do the charts tell us? Find out in this video...

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