Shares of HDFC Asset Management Company (AMC) surged nearly 15% to reach a 52-week high on Friday after the Securities and Exchange Board of India (Sebi) decided to postpone the overhaul of TER regulations. Over 38 lakh HDFC AMC shares were traded on the NSE, valued at Rs 855.98 crore. Sebi stated that it would release another consultation paper on the issue. The mutual fund industry had opposed the proposal, citing potential negative impact on their businesses. Other AMC stocks such as UTI AMC and Aditya Birla Sun Life AMC also gained on the news.
Several large investors and funds, including Canada Pension Plan Investment Board (CPPB), Abrdn Investment Management, TPG, Warburg Pincus, General Atlantic, Carlyle, Sequoia Capital, T. Rowe Price International, Norges Bank, and Fairfax, among others, have raised hundreds of crores by selling shares in June.
From being a must have in portfolio to a long phase of underperformance and now clean out block trades and re-bidding for stakes have brought AMC stocks back into limelight. Is this correction a buying opportunity or will the analyst be right this time.
Block and bulk deals involving both buying and selling actions were prominent in at least 7 companies last week, such as Shriram Finance, Timken India, and HDFC Asset Management Company, among others. Piramal Enterprises and TPG India sold over 3.12 crore and 99.18 lakh shares, respectively, in Shriram Finance, which were worth Rs 4,824 crore and Rs 1,390 crore, respectively, while Abrdn Investment Management exited from HDFC AMC selling 2.18 crore shares for Rs 4,079 crore. At least 15 prominent deals were reported, with Shriram Finance, HDFC AMC, and Timken India topping the chart.
From the Sensex pack, HUL, M&M, IndusInd Bank, Maruti, Bajaj Finance, and HDFC opened with cuts, while Power Grid, Wipro, Titan, Kotak Bank, Asian Paints, and Tech Mahindra opened with gains.