The Hindu Business Line : PruICICI Growth Plan: Much cement dumped

PruICICI Growth Plan is an open-ended diversified equity fund with 31 stocks in its February portfolio. The top ten stocks accounted for 40 per cent of the portfolio and the preferred three sectors cornered 37 per cent of the asset base. The fund made certain changes in its portfolio during the quarter ended February 2007.

Exposure to software was enhanced, with holdings in TCS almost tripled. Additional shares were accumulated in Infosys and Wipro. Satyam Computer, And HCL Technologies and Firstsource Solutions were added during the quarter. Banking stocks have been quite volatile over the past couple of the months on the back of increases in interest rates. The fund added ICICI Bank and State Bank of India shares, while exposure to Punjab National Bank was pared.

Bharti Airtel, which appreciated close to 50 per cent in the past six months, was the lone stock to represent telecom services and asset allocation to the sector was enhanced.

The media and entertainment sector was added and cornered 3.95 per cent of the assets. Zee Telefilms and ASC Enterprises were the stocks bought. In the petroleum space, Reliance Industries, which has appreciated significantly over the past year, found favour with the fund, which increased its holdings. The fund stepped up the holdings in ONGC, the lone stock to represent the segment. Ferrous metals were included during this quarter. Sesa Goa, was added afresh, the stock having been of late dogged by uncertainty surrounding the ban on iron ore exports. Public sector steel major SAIL was another stock to step into the portfolio.

Non-ferrous metals moved out of the portfolio. Sterlite Industries and Hindalco were sold. There was load-shedding in the power sector too, with the exit of Reliance Energy and Tata Power.

With the fund pruning exposure to stocks in the capital goods space, the sector's weight has come down marginally. Bharat Electronics and Larsen & Toubro were trimmed while exposure to BHEL and Siemens were increased. Bharat Earth Movers was the only stock to move out of the portfolio.

Following uncertainties surrounding cement pricing, the fund appears to have trimmed holdings, with the sector allocations reduced by 50 per cent.

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