Stock fund managers cut cash in March and a majority of them plan to trim it further to take advantage of an ongoing share market rally, according to an asset allocation poll of seven domestic fund houses.
The BSE Sensex has surged more than 40 per cent from its 2009 lows hit in early March and recorded its biggest monthly gain in a decade in April, powered by revival in foreign portfolio flows, part of an Asia- wide share market rally on growing optimism that the world economy was on the mend. Most fund managers sees domestic shares still fairly valued and expect them to gain in the next three months, the poll shows. "The 40 per cent rise has been from an extreme lower value to fair valuation" with room to rise further, said I.V. Subramaniam, chief investment officer of Quantum Advisors Pvt Ltd. Five of the respondents to the poll conducted between April 22 and April 28 said India's benchmark index, trading at just over 13 times its 12 months forward earnings, was fairly valued. Three said stocks could gain 5-10 per cent in three months. --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Small Investment" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/Small-Investment?hl=en -~----------~----~----~----~------~----~------~--~---
