Mumbai: Mutual funds on Tuesday sold shares of Kingfisher Airlines on news that the government may revoke the company's license due to violation of license conditions, said dealers.
Fund houses on Tuesday also sold shares of Tata Motors, Bajaj Auto, and Larsen& Toubro among others. Selling in the rate-sensitive sectors such as automobiles has increased ever since the Reserve Bank of India left the repo rate unchanged at its mid-quarter monetary policy review on Thursday, dealers said.
Mutual funds covered their short positions in the banking sector by buying shares of State Bank of India, Bank of India and HDFC Bank, dealers said.
Fund houses bought into "defensive sectors, namely fast moving consumer goods and pharmaceuticals, by purchasing scrips like ITC, Sun Pharmaceuticals Industries, Lupin, and Cipla, dealers said.
On Monday, mutual funds net sold shares worth 894 mln rupees. So far in March, they have net sold shares worth 9.96 bln rupees.