MFs cut stakes in PSUs

(20 second reading) Domestic mutual funds reduced their exposure to many public sector stocks in the March quarter following a sharp rally in the pack over the past year. The BSE PSU index rallied 96% in the last year and is currently trading at a 40% premium to the five-year average.

Of the 25 public sector undertakings (PSUs) that published their shareholding for the March quarter, 11 saw a decline in mutual fund holdings, while only three stocks saw an increase in stakes.
Asset managers reduced their stakes in state-owned companies like SJVN, Punjab Nationa bank, RITES, Hindustan Copper, Mishra Dhatu Nigam, BHEL, Bharat Electronics, and Life Insurance Corporation, among others.