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The recent run-up in cyclical stocks and PSUs has turned out to be a money-spinner for most leading mutual funds which have turned bullish on these stocks since last October. For instance, ICICI Prudential Mutual Fund had bought NTPC, ONGC and GAIL among others stocks since late last year.
From a low of ₹65 in October, ONGC has almost doubled to ₹111 while NTPC and GAIL were up 17 per cent and 68 per cent to ₹103 and ₹143 a share.
ICICI Prudential Equity & Debt Fund, Multi-Asset Fund and India Opportunities Fund had an exposure of 5-6 per cent to ONGC.
Similarly, these schemes have exposure of 7-9.2 per cent towards NTPC. Many schemes of HDFC Asset Management Company, Nippon India MF and Franklin Templeton India had turned positive on cyclical stocks.
Contra bet
Sector wise, power, telecom, metal and mining were some of the contra bets taken by the fund manager.
S Naren, Chief Investment Officer, ICICI Pru MF in his post-Budget interaction said, “The stepping stones have been laid for investing in pro-growth and cyclical sectors over the next few years”. In the domestic front, consumer durables, banking, auto, capital goods and infrastructure sectors are poised to receive huge benefits from the pro-growth Budget, he said. Global cyclicals, such as metals and mining, and even oil are in a better shape and look attractive, he added.
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