)
Equity fund managers have turned net sellers as key indices trade at all-time highs.
The first 11 trading sessions this month (data is available till this Wednesday) saw net buying only on three days. The other sessions saw fund managers selling their holdings. Put together, shares worth Rs 674 crore were net-sold.
"This is nothing but a tactical sell call, to partially book profits on some counters. The underlying current remains bullish and a buy-on-dips strategy is being adopted," says the equity head of a mid-sized fund house. He added the selling was marginal and one should not read much into it.
It was similarly so in September, when in the initial sessions, fund managers chose to sell, only to buy in the later part of the month.
After the Narendra Modi-led government took centre-stage in May, equity funds have been on a continuous buying spree. During May-October, fund managers pumped in Rs 25,600 crore, the highest in the sector's history.
"Even if we are sellers (of equities) this month, it should be seen as an aberration. It's a mild and conscious sell call, not resulting out of redemption pressure, as has been the case earlier. It's a slight trimming of exposure in some stocks which have run up too much," explains the chief investment officer of one of the largest fund houses.
Adding: "There are several stocks, irrespective of the sectors, trading at 30-40 times multiples or more. We feel it's better to move out from them and look for other avenues. Sector as well as stock rotation is important to take advantage of a bull market."
Stocks which saw selling are in pharmaceuticals, automobiles and in some information technology companies.
The BSE's S&P Sensex has gained nearly 1.7 per cent so far in November. It closed on Friday at an all-time high of 28,334.63.
As on October 31, the equity segment of the fund sector had assets worth Rs 2.97 lakh crore.
