The idea is simple: the Swadeshi software boom had peaked, the managers sold out. As the government allowed exclusive marketing rights (EMR) to pharma MNCs, a rare direct policy impact on the pharma scrips followed: the AMC (Asset Management Company) brains bought into MNC muscle.

``The government has recently announced a policy for granting exclusive marketing rights (EMR) to multinational pharmaceutical companies. This means that these companies can now market their latest products in India without any fear of these products being imitated by other Indian companies. This would encourage these companies to introduce their latest products in India, which will improve their competitive position and profitability,'' says a Birla Advantagefund manager.

``We have reduced our exposure to software stocks during this period, by selling Satyam Computers, Wipro and DSQ Software. The share price of most of these companies has fallen since then. Since we anticipate good prospects for MNC pharmaceuticals companies, we have either made fresh purchases or added to our position in companies like Fulford, Abbott Laboratories, E Merck, Hoechst Marion Roussel and German Remedies,'' said the fund manager, adding: ``We are confident that these actions will add to the good performance of our equity portfolio.''

As a result, over the last month-and-half, the share of pharma scrips in the Fund's portfolio has gone up to 38 per cent - the largest that the Birla Advantage Fund in any sector - with Pfizer India alone accounting for around 8 per cent. The share of the pharma scrips is up from 27 per cent in the last month.

The software scrips account for 13 per cent, as per the November-end figures, down from 23 per cent in the preceding month. The share of thefast moving consumer companies (FMCG) in the Fund's portfolio stands at a constant but healthy 26 per cent.

Pond's, Indian Shaving Products, Nestle, Hindustan Lever and SmithKline Beecham Consumer figure among the scrips in which the Fund has significant exposure, with the highest being 6 per cent in Pond's.

The Fund has invested Rs 5.63 crore in Punjab Tractors, the sole company from the sector in its portfolio, which amounts to around 6 per cent of the total corpus.

The Birla Advantage Fund has also reduced its exposure in call and debt instrument from three per cent in October-end to around one per cent as per the latest figures available.

The Fund's net asset value stands at Rs 15.95 on December 16 as compared with Rs 15.13 on November 30.