With Natarajan Chandrasekaran’s appointment as the Chairman of Tata Sons, mutual funds offloaded their stakes in TCS, Tata Motors and Tata Power in January 2017, data show.
In October and November, mutual funds bought Tata Motors, but pared exposure in the subsequent two months as demonetisation impacted sales growth. However, Tata Motors DVR remained popular, and funds increased exposure in the stock.
Buying was also visible in activity in Tata Steel. The pace of increase, according to Morningstar, has been steady all though the year, as mutual funds gained comfort from the steady metal prices.
In the last two months, Tata Power has witnessed biggest drop in the mutual fund holding after seeing an increase in the stake for last seven consecutive months, the Morningstar report says. In January 2017, the stock holding dropped by 115-lakh shares, which resulted in 15.39% decrease in the shares held by the mutual funds.