Retail investors booked profits in 14 midcaps after strong rally

Retail investors booked profits in 14 midcaps after strong rally

NEW DELHI: Shareholding data released by three dozen BSE Midcap index companies suggests retail investors chose to book profit in a handful of stocks during the December quarter, following the sharp rally that they saw from their March lows.

Out of the 97 BSE Midcap index stocks, 38 have so far released their third quarter shareholding data. The ownership of small investors in seven of these companies fell by 50 basis points to 270 basis points during the quarter gone by, data compiled from the corporate database AceEquity showed.

Since March 24, these stocks have rallied anywhere between 72 per cent and 158 per cent. In comparison, the BSE Midcap index has soared 100 per cent from the March 24 low of 9,555.

Among the stock that have seen a stellar run are M&M Financial Services, which has climbed 92 per cent from the March low. Retail individual investors owning up to Rs 2 lakh worth of shares in the NBFC held 4.52 per cent stake in it as of December 31, down 269 basis points over September-end’s 7.21 per cent stake.

L&T Finance Holdings and Max Financial Services rallied 115 per cent and 137 per cent, respectively, from their March lows. Retail holdings in L&T Finance fell by 194 basis points to 11.21 per cent from 13.15 per cent sequentially. Max Financial’s retail shareholders trimmed stakes by 134 basis points to 6.43 per cent from 7.77 per cent at the end of the September quarter.

Retail investors cut stake in L&T Finance Holdings even after the NBFC reported a 52 per cent rise in September quarter profits to Rs 265 crore from Rs 174 crore a year earlier.

In the case of Max Financial, Dolat Capital said the company has already delivered strong growth thus far, and the stock price factors in most positives.

State-run Canara Bank saw retail investors cut stake by 91 basis points to 7.74 per cent in December quarter from 8.65 per cent at the end of the previous quarter. The stock has advanced 72 per cent since March 24. The PSU lender reported a 22 per cent rise in profit at Rs 444.41 crore for the September quarter. Gross non-performing assets (NPAs) fell marginally to 8.23 per cent of the gross advances from 8.68 per cent in June quarter.

Among the seven stocks, Amara Raja Batteries saw the biggest rally at 157 per cent. Retail investors cut stake in the battery maker by 68 basis points to 6.94 per cent from 7.62 per cent. The company had reported a 7.93 per cent drop in consolidated profit for the September quarter at Rs 201.27.

Page Industries and Bharat Electronics were two other midcaps where retail investors trimmed their holdings by over 50 basis points. Page Industries has gained 77 per cent while Bharat Electronics 130 per cent since March 24.

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