Since last October, the run-up in cyclical stocks and PSUs has become a money-spinner for most leading mutual funds which have turned bullish on these stocks. For example, ICICI Prudential Mutual Fund buying GAIL, ONGC, and NTPC amongst the other stocks since the previous year.

 

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NTPC and GAIL grew up 17% and 68% to ₹103 and ₹143 a share whereas ONGC which had a low of ₹65 in October has now nearly doubled to ₹111. ICICI Prudential Equity & Debt Fund, Multi-Asset Fund, and India Opportunities Fund had an exposure of 5-6% to ONGC.  Similarly, these schemes have exposure of 7-9.2% towards NTPC. Several schemes of leading mutual funds companies such as Nippon India MF, HDFC Asset Management Company, and Franklin Templeton India have turned positive on cyclical stocks. Sector-wise, power, telecom, metal, and mining were some of the contra bets taken by the fund manager.

In his post-Budget interaction, S Naren, Chief Investment Officer, ICICI Prudential Mutual Fund spoke about the stepping stones been laid for investment in pro-growth and cyclical sectors over the subsequent years, and the domestic front, banking, auto, capital goods, consumer durables, and infrastructure sectors are assured to receive huge benefits from the pro-growth budget, and global cyclical, such as metals and mining, and oil being in a better shape and looking attractive.

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