RITES, IOB, UCO Bank, CIL, BOI, Canara Bank: PSU stocks reduces stakes in MFs and FPIs in Q2

10 BSE PSU index constituents have revived their shareholding pattern where five stocks saw mutual funds (MFs) rates cut and six stocks saw foreign portfolio investors reducing stakes in the quarter gone by. In most cases, however, the quantum change was insignificant.

In the case of Rites Ltd, MFs cut exposure in the railway counter to 2.83 percent in the September quarter from 3.32 percent in the June quarter, down 0.49 percent sequentially. FPIs also reduced stake in the PSU by 30 basis points to 3.2 percent from 3.5 percent earlier. Retail investors were gung-ho, as they upped their stake in Rites by 119 basis points to 7.05 percent from 6.55 percent.

Coal India saw MFs reducing stake by 20 basis points to 10.54 percent from 10.74 percent. FPIs, on the other hand, upped their stake in Coal India by 77 basis points to 9.16 percent from 8.39 percent, data compiled from the corporate database AceEquity suggested.

In the case of the Bank of India, MFs (down 23 basis points), FPIs (down 0.4 percent), and retail investors (down 0.08 percent) were seen trimming stakes. MFs held a 4.7 percent stake as of September 30, FPI 3.32 percent, and retail 4.7 percent.

Many PSU stocks have seen sharp corrections of late amid concern over their prevailing valuations. Kotak Institutional Equities in a recent note said that the government has not had any compulsion to sell stakes in PSUs. The stratospheric valuations of certain PSUs may not hold up with large government stake sales, it said.

Mutual funds increase their stake in Canara Bank by 85 basis points to 4.34 percent. Retail investors also increased their stake by 0.53 percentage points to 8.16 percent. FPIs reduced stake in the PSB by 65 basis points to 11.24 percent.

Similarly, Mangalore Refinery And Petrochemicals Ltd, Gujarat Mineral Development Corporation Ltd, UCO Bank, Indian Overseas Bank, MMTC Ltd, and KIOCL Ltd have also come out with their shareholding patterns. Investors did not tinker much with these stocks in the September quarter.