Why does Ashapura Minechem and Gujarat NRE Coke feature in your portfolio?
Your portfolio is heavy on energy with mainly three stocks. We are underweight in the PSU oil and gas sector. The companies may be attractive on valuations but government intervention in this sector is high as the government does play a key role in determining subsidies and regulation. HPCL was an opportunistic buy when it fell sharply. We have a meaningful exposure to Reliance Industries and Reliance Petroleum. You speak about being overweight and underweight in sectors. Do you have any limits on it? Our internal regulations don’t permit more than 30 per cent of the portfolio in one sector, which is absolute, and not more than 15 per cent overweight, relative to the benchmark. So for example, if a sector comprises 3 per cent of the benchmark, we cannot exceed 18 per cent. After you sold Jaiprakash Associates you have no real estate exposure. In real estate, one can invest in real estate developers or in companies which own land banks. We have in past owned companies that have substant
