Mutual Funds see opportunity in stock market fall

Equity fund managers, who trimmed stock exposure to a four-month low in January, now plan to deploy cash back mainly in energy and financial sectors, according to a poll conducted by a news agency from Feb 19 to Feb 25. Seven of the 10 participants in the Reuters Asset Allocation Poll said the benchmark index was not likely to show negative return in the next three months, making battered stocks a good bet at current levels. "Valuations are looking quite attractive after the recent decline in the stock market," said R Rajagopal, who oversees about Rs 3000 crore as chief investment officer for DBS Cholamandalam Asset Management Ltd. "The corporate results of third quarter have also been robust enough to indicate that the growth rate would be in the range of 20-25 per cent," he added.