Fire sale by MFs spells trouble for portfolio management services

Other market experts believe given that the market has been volatile, bottom fishing has become quite difficult for fund managers and PMS players

The Securities and Exchange Board of India’s (Sebi’s) reclassification of equity mutual funds seems to have led to a sharp fall in many mid- and small-cap stocks. This, in turn, is hurting many fund managers in the portfolio management services (PMS) space who placed bets on them. “Many schemes have started selling certain stocks in block deals. And many PMS players who were invested in these stocks are feeling the pinch,” said the chief executive officer (CEO) of a fund house.

South India-based Equity Intelligence founder Porinju Veliyath, who, according to sources, runs a Rs 10 billion PMS, wrote to