Lever Q4 show spices up FMCG funds' weekly tally

Fast-moving consumer goods (FMCG) sector funds gave best average return of 0.93 per cent in the week ended Friday, across all categories, led by a 11 per cent surge in Hindustan Lever shares.

Compared with the 2.78 per cent rise in the BSE FMCG index, the funds, however, underperformed the index.

Apart from the FMCG funds, all other equity funds gave negative returns on the back of a fall in indices.

Franklin FMCG Fund gave the highest return of 1.37 per cent, followed by Magnum FMCG Fund with a 1.35 per cent return, and Pru-ICICI FMCG Fund with a 0.06 per cent return.

Franklin Templeton Mutual said in its weekly market view, "results from FMCG major Hindustan Lever bettered estimates and have been in line with indications of growing traction in the sector on the back of a broadbased demand recovery."

Last week, HLL reported 56 per cent growth in October-December earnings to Rs 520 crore, led by a 14 per cent increase in sales and an exceptional income of Rs 82.4 crore from sale of its tea plantations.

BSE Auto index also rose last week, gaining 1.61 per cent. However, automobile sector funds gave negative average return of 0.32 per cent.

UTI Auto Sector and JM Auto Sector gave 0.11 per cent and 0.52 per cent negative returns respectively.

Technology sector funds gave negative average return of 2.11 per cent, outperforming the BSE IT Index and the CNX IT Index that fell 2.21 per cent and 2.28 per cent, respectively.

Within technology funds, DSPML Technology.com Fund gave the lowest negative return of 0.43 per cent while Kotak Tech gave the highest negative return of 2.79 per cent.

Banking sector funds registered 2.17 per cent negative average return. In comparison, the CNX Bank Index declined 2.83 per cent. Reliance Banking Fund and UTI Banking Sector Fund posted negative returns of 1.79 per cent and 2.54 per cent respectively.

After topping returns chart for two weeks, pharmaceutical sector funds recorded a negative average return of 3.14 per cent, the lowest across all scheme categories. The BSE Healthcare Index declined 2 per cent.

Among the pharma funds, JM Healthcare Sector Fund gave a 2.53 per cent negative return while UTI Pharma & Healthcare Fund was worst hit with a 4.16 per cent negative return.

Equity-linked savings schemes and diversified equity funds recorded negative average returns of 0.95 per cent and 1.13 per cent, respectively.

Only two tax-saving schemes out of 24 managed to give positive returns last week. Escorts Tax Plan was the top performer with 1.62 per cent returns followed by Magnum Taxgain with 0.05 per cent return. Kotak ELSS with a 2.33 per cent negative return was the worst hit.

In a falling equity market, only nine diversified equity schemes out of 146, managed to give positive returns. Kotak MNC stood first with a 2.16 per cent return followed by Franklin India Opportunities Fund and Can D'Mat that notched up 1.56 per cent and 0.93 per cent returns, respectively.

Others which posted positive returns were: Escorts Growth (0.69 per cent), Sundaram Select Midcap (0.61 per cent), Canexpo (0.3 per cent), Magnum Midcap (0.24 per cent), Canemerging Equities (0.21 per cent), and Principal Dividend Yield (0.12 per cent).