PSU stocks: Both mutual funds and FIIs just turned bearish on these 13 counters
mutual funds (MFs) and foreign institutional investors (FIIs) were seen pulling out money from at least 13 PSU stocks in the June quarter. Interestingly, small retail investors ended up buying all of them.
Q1 shareholding pattern reveals that MFs sold stakes in 28 PSU stocks and FIIs were bearish on 30 such counters. Altogether there were 13 'sarkari' stocks sold by both the big boys of Dalal Street.
Shares of the retail favorite multibagger defense PSU stock HAL saw mutual funds reduce their stake by 91 basis points (bps) and foreign institutional investors (FIIs) reduce theirs by 74 bps. Retail took the opposite road and increased their stake by 1.31 bps to 6.47%.
Others on the list include RITES, Bank of Baroda, NTPC, NLC India, Bharat Electronics, HPCL, Container Corporation, ONGC, MMTC, NMDC Steel, Coal India, and The New India Assurance Company.
In the case of railway PSU RITES, the FII stake decreased from 4.17% to 3.50% quarter-on-quarter, while the retail stake increased by 144 basis points.
RITES is also one of those PSU stocks where retail has a bigger say than both MFs and FIIs. At the end of the June quarter, FIIs and MFs together owned a 6.82% stake in RITES, while retail owned a bigger pie at 9.72%.
What should investors do?
PSU stocks, in general, have run up a lot and in some cases well ahead of the fundamentals.
«Although there are no near-term risks to growth, but valuation wise it has run up fast, especially in non-financial pockets. I think retail investors should take caution and do
