The Hindu Business Line : DSPML Equity Fund: Higher IT exposure

DSPML Equity Fund has a well-diversified portfolio, with 65 stocks from 21 sectors. The top 10 stocks account for 30 per cent of the assets and the preferred three sectors make up 38 per cent of the portfolio. Here’s a look at the portfolio changes between April and June 2007.

The fund enhanced its exposure to the IT sector, adding frontline technology stocks Infosys, Satyam Computer and HCL Technologies. Fresh exposures were taken in Geodesic Information Systems, even as TCS, i-flex Solutions and Tanla Solutions made an exit. Exposure to NIIT and MphasiS BFL was increased.

During this quarter, the allocation to capital goods almost doubled. BHEL, Bharat Electronics and Suzlon Energy stepped into the portfolio, while holdings in Larsen & Toubro and BEML increased. The fund sold its holdings in Praj Industries, however, and trimmed its exposure to Crompton Greaves.

The fund retained its interest in the oil and gas sector, accumulating BPCL and Reliance Petroleum. It also bought into IOC. The exposure to HPCL and Reliance Industries was reduced.

Among banking stocks, State Bank of India and UTI Bank were sold partially and IOB was retained without much change. ING Vysya Bank and ICICI Bank were the new additions. Media and entertainment were reduced marginally, with exposure to UTV Software, NDTV and print major HT Media pruned. Exposure to leading Hindi daily Jagran Prakashan was increased substantially.

Consumer non-durables underwent a minor re-jig. Eveready moved out while Marico Industries was pared. Tata Tea, GlaxoSmithKline Consumer Healthcare and Fedder Lloyd were added afresh, and holdings in Nestle increased. Exposure to the construction sector declined slightly, with IVRCL moving out of the portfolio. Indiabulls Real Estate holdings moved up substantially. Jaiprakash Associates was added afresh while Punj Lloyd was trimmed.

Ferrous metals seem to be back in market favour. Anticipating there is some steam left in the sector, the fund increased holdings in Indian Seamless Steel. Jindal Steel and Power and Monnet Ispat were added.

The fund exited iron-ore major Sesa Goa completely. Exposure to Tata Steel was reduced a tad.

Ambuja Cements, GVK Power and Infrastructure, HCL Infosystems, Indraprastha Gas and Mahindra and Mahindra were some other stocks added during the quarter.

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