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Sectoral Funds – Weekly roundup

Jul 8, 2000

This week witnessed the BSE Sensex posting 3.3% appreciation. The last few weeks have seen a revival in old economy stocks with the new economy taking a backseat for a change. However, this does not prevent IT funds from outperforming the others.

Open-ended, IT FundsNAV
UTI Sector- Software25.604.30%12.30%0.00%96.20%
DSP ML (Gr)10.094.20%7.20%0.00%18.10%
K P Internet Opport.(Gr)9.014.00%5.30%0.00%-5.90%
K P Infotech (Gr)32.333.60%9.10%218.20%180.30%
Magnum Sector Funds-IT17.713.00%9.20%0.00%148.20%
K Tech8.562.60%6.20%0.00%9.20%
IL&FS eCOM Fund (Gr)7.782.20%11.60%0.00%-42.90%
Birla IT Fund (Gr)22.852.20%4.80%102.00%18.20%
Chola Freedom Tech (Cum)17.751.40%9.40%28.30%25.40%
Pru ICICI Tech. (Gr)6.591.10%5.90%0.00%-33.00%
Alliance New Millenn (Gr)9.601.10%6.10%0.00%-37.20%
Tata IT Sector Fund13.790.90%6.70%119.60%29.90%
Sun F&C Emerg Tech (Gr)7.610.50%4.40%0.00%-11.10%

IT funds continued to see rapid growth. With the run-up in the prices of Infosys and Satyam (the cornerstone of most portfolios) IT funds continued to do well. All funds in this category witnessed growth over the week and the month. UTI’s Software fund was the star performer brushing aside misconceptions that private funds are better performers vis-ŕ-vis public sector funds.

Open-ended, Pharma FundsNAV
Magnum Sector Funds-Pharma10.163.10%5.40%0.00%0.90%
K P Pharma (Gr)10.262.30%1.90%8.50%8.10%
UTI Sector-Pharma10.511.60%3.40%0.00%-11.90%

Pharma funds also witnessed NAV appreciation. Indian pharma stocks (Ranbaxy, Cipla, Dr Reddy) had some role to play in this. MNC pharma stocks remained steady. Buying by retail investors and institutions implies that there is appetite for pharma stocks. SBI’s Magnum Pharma was the outperformer over the week and the month.

Open-ended, FMCG FundsNAV
Magnum Sector Funds-FMCG8.971.80%3.00%0.00%-13.10%
K P FMCG (Gr) 12.010.80%2.00%10.40%18.60%
Pru ICICI FMCG (Gr)10.030.60%3.50%-4.70%-2.30%

Performance of FMCG funds’ can at best be described as staid, compared to IT and pharma. However, all FMCG funds were in the positive over the week. The reasons are not hard to find – all FMCG funds have taken large exposures to Hindustan Lever which is on a roll. (Incidentally Hindustan Lever went ex-split this week and buying interest continued to remain high).

As in pharma, SBI’s Magnum FMCG was most impressive over the week and the month. However, it improved over a much lower base, when compared to Kothari FMCG and Pru-ICICI FMCG.

Public sector funds seem to be creeping into the limelight very slowly. This is evident from the fact that all the three sectoral star performers (UTI and SBI MF) were from the public sector.

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