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Sectoral Funds – Weekly roundup

Jul 15, 2000

The BSE Sensex fell marginally by 1.0% last week to close at 4,857 points. This week was characterised by subdued mood in IT stocks with improved buying interest in FMCGs.

Open-ended, IT FundsNAV
(Rs)
Last
week
Last
month
Last
year
Since
inception
K P Internet Opport.(Gr)8.64-2.50%-0.50%0.00%-9.80%
Chola Freedom Tech (Cum)17.11-2.60%0.60%15.50%23.30%
K Tech8.21-2.80%0.30%0.00%4.70%
Sun F&C Emerg Tech (Gr)7.32-3.00%-0.40%0.00%-14.50%
Pru ICICI Tech. (Gr)6.31-3.10%-2.30%0.00%-35.90%
K P Infotech (Gr)30.82-3.10%0.60%186.30%169.90%
Tata IT Sector Fund12.97-3.60%-1.70%91.40%27.70%
Alliance New Millenn (Gr)9.09-3.90%-2.20%0.00%-40.50%
Birla IT Fund (Gr)21.18-4.40%-4.10%78.10%16.50%
IL&FS eCOM Fund (Gr)7.25-4.50%-0.70%0.00%-46.80%
DSP ML Tech.com (Div)9.38-4.50%-2.00%0.00%9.80%

As is more than evident from the above table, it was a forgettable week for IT funds, as NAVs of all funds fell this week. And the performance of IT funds over the month will also disappoint investors.

Despite having posted pretty impressive (quarterly) results, software stocks like Infosys and Satyam did not witness any upward movement. This can be attributed to the fact that the market had already discounted these results. Given the mood in IT stocks at present, it is unlikely that these stocks will appreciate (if at all) in a big way over the next few weeks. So there could be some more bad news for IT and IT-heavy growth funds in the short term.

Open-ended, Pharma FundsNAV
(Rs)
Last
week
Last
month
Last
year
Since
inception
Magnum Sector Funds-Pharma10.292.60%6.60%0.00%2.20%
UTI Sector-Pharma10.772.50%6.80%0.00%-9.70%
K P Pharma (Gr)10.01-3.10%1.40%3.30%5.80%

Unlike their IT siblings, the mood in pharma stocks seems positive and this is mainly due to buying interest at lower levels. Pharma stocks have appreciated over the month as buying has sustained over the past few weeks. But this cannot be an indication of things to come as nothing exceptional is happening in the sector and there may come a time when the buying wanes.

Open-ended, FMCG FundsNAV
(Rs)
Last
week
Last
month
Last
year
Since
inception
K P FMCG (Gr) 12.443.70%7.60%11.60%21.70%
Pru ICICI FMCG (Gr)10.222.50%6.60%-5.70%-0.50%
Magnum Sector Funds-FMCG8.941.20%3.00%0.00%-13.40%

Much like pharma stocks, the mood in FMCG stocks is upbeat and this is reflected in the NAVs of FMCG funds over the week. As FMCG stocks have been languishing at 52-week lows, and there is anticipation of above-average earnings, these stocks have witnessed some buying. The disinterest in IT stocks is another reason why FMCG stocks are in the limelight.

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