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Sectoral Funds – Weekly roundup - Views on News from Equitymaster
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  • Aug 12, 2000

    Sectoral Funds – Weekly roundup

    The BSE Sensex slid 0.2% this week to close at 4,192.0 points. The S&P CNX 50, on the other hand, climbed marginally by 0.9% to 2,092 points. In a sharp reversal of trend over the past few weeks, IT funds crawled back into the limelight.

    Open-ended, IT Funds NAV
    IL&FS eCOM Fund (Gr) 5.7 3.7% -21.6% 0.0% -58.4%
    K P Infotech (Gr) 26.8 3.0% -14.0% 102.5% 141.3%
    Magnum Sector Funds-IT 14.3 2.7% -15.3% 82.7% 96.4%
    Birla IT Fund (Gr) 16.9 2.2% -20.5% 30.3% 11.5%
    Chola Freedom Tech (Cum) 14.6 2.2% -15.1% 0.0% 15.2%
    K P Internet Opport.(Gr) 7.5 2.0% -13.6% 0.0% -21.7%
    UTI Sector- Software 19.7 1.3% -17.9% 0.0% 51.0%
    K Tech 6.9 0.7% -16.2% 0.0% -11.9%
    Alliance New Millenn (Gr) 7.4 0.1% -19.0% 0.0% -51.5%
    Tata IT Sector Fund 10.6 0.0% -18.3% 42.7% 20.7%
    DSP ML Tech.com (Gr) 7.5 -0.5% -20.4% 0.0% -12.6%
    Pru ICICI Tech. (Gr) 5.3 -0.6% -16.9% 0.0% -46.3%

    IT is back…for a change. That is not to say that all those concerns about IT valuations are a thing of the past. On the contrary, even at this stage with IT stocks having climbed during the week, it would take a brave analyst to comment on the prospects of IT stocks in the coming months. Fund managers in any case won’t be complaining too much, as IT funds witnessed some upward movement, at long last. The rise in NAVs of most IT funds can be attributed to the surge in prices of Infosys, Visualsoft and Satyam. However, the character (or lack of it) of this rally (?) can be gauged by the slump in these stocks on Friday.

    Open-ended, Pharma Funds NAV
    K P Pharma (Gr) 9.6 -1.0% -5.4% -11.0% 2.4%
    Magnum Sector Funds-Pharma 9.6 -1.2% -6.1% -10.0% -4.9%
    UTI Sector-Pharma 9.8 -1.4% -8.9% 0.0% -17.8%

    If IT stocks got the fund managers in the right mood, pharma stocks most certainly didn’t. Pharma stocks saw a downslide and this was reflected in the NAVs of pharma funds. The scenario in the coming weeks for pharma stocks (both MNC and Indian) is unlikely to be very different.

    Open-ended, FMCG Funds NAV
    Pru ICICI FMCG (Gr) 9.7 -0.9% -2.8% -12.9% -4.5%
    K P FMCG (Gr) 11.8 -1.2% -3.0% 2.7% 15.2%
    Magnum Sector Funds-FMCG 8.2 -3.9% -8.6% -22.5% -20.0%

    If pharma stocks spoilt the mood, FMCG stocks really rubbed it in. This is because FMCG stocks are witnessing a sustained decline despite companies posting some reasonable (and even impressive) earnings growth. What is even more strange is that fund managers we have spoken to, keep telling us about the potential in FMCG, but evidently there seems to be little more than plain talk.



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