Mutual Funds' exposure in banking stock hits four-month high

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SummaryAccording to the latest data, Mutual Fund investments in banking stocks reached Rs 32,807 crore as on October 31.

Mutual Funds’ exposure in banking stock hits four-month high

New Delhi: Fund managers raised exposure in bank stocks to 4-month high of nearly Rs 33,000 crore in October amid rising equities market and various steps taken by the Reserve Bank to prop the banking sector. According to the latest data available with market regulator Sebi, Mutual Fund investments in banking stocks reached Rs 32,807 crore as on October 31, accounting for 17.77 per cent of their total equity assets under management (AUM) of Rs 1.85 lakh crore. This was the highest level since June, when fund managers had shored-up their investment in banking shares to Rs 35,442 crore. In September, MFs’ exposure in banking stocks increased to Rs 26,838 crore after touching the lowest level in four years, at Rs 22,744 crore, in August. The investment had risen to a high of Rs 43,659 crore in December 2012. Market participants said MFs have shown interest in the banking stocks during the past two months (September-October) primarily on account of measures announced by the new Reserve Bank Governor Raghuram Rajan coupled with overall surge in the stock market. Banking stocks climbed in October for the second consecutive month on value buying and a slew of RBI measures. The banking index (bankex) surged by 19.4 per cent in October, while the 30-scrip BSE sensitive index (Sensex) rose 9.2 per cent.

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