STOCK MARKET BSE NSE

MFs Exposure to Software Stocks Falls to Rs 24,315 cr

Published: 23rd April 2014 06:53 PM  |   Last Updated: 23rd April 2014 07:54 PM   |  A+A-

Exposure of mutual funds to IT stocks has gone down to Rs 24,315 crore in March against an all-time high exposure of `28,784 crore in February.

Market analysts said fund managers exposure to the software sector has dropped primarily on account of investors’ concerns over the impact of appreciating rupee on exporters and expensive valuations.

However, investment growth in software stocks by the industry's equity fund managers has risen from Rs 19,196 crore in March 2013 to Rs 24,315 crore in the corresponding month this year.

A mutual fund is a vehicle made up of a pool of funds collected from investors that buys and sells securities such as stocks, bonds and money market instruments.

According to latest data available with market regulator Securities and Exchange Board of India (Sebi), investment by the mutual fund industry in software stocks stood at `24,315 crore as on March 31, accounting for 11.92 per cent of their total equity assets under management (AUM) of Rs 2.04 lakh crore.

While some experts said that rising Indian currency is a cause for concern but they are comfortable with the currency being hovering around 60 levels.

During the month of March, IT stocks under-performed broader market by falling over 10 per cent, while the BSE's benchmark Sensex rose by nearly 6 per cent.

In March this year, mutual funds have investment of Rs 40,293 crore in the banking stocks, which was the highest among all sectors.

Besides, pharma stocks accounted for Rs 16,066 crore, while consumer non-durables attracted Rs 12,947 crore and petroleum products at Rs 10,909 crore.

Stay up to date on all the latest Business news with The New Indian Express App. Download now

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp