Amid major corrections in equity markets last month, mutual funds increased their stake in sectors such as private banks, NBFCs, healthcare, telecom and metals while reducing exposure to capital goods, technology, automobiles, consumer, oil & gas, utilities, public sector banks, retail and infrastructure segments.
With an 18.5% allocation, private banks remained the top sector holding for mutual funds, followed by technology (9.3%), automobiles (8.1%), and healthcare (7.6%), the report said.
Media, capital goods, textiles, infrastructure and chemicals witnessed significant month-on-month (MoM) decline in value.
Total assets under management (AUM) of mutual funds fell by 4.04% MoM to ₹64.53 lakh crore, as benchmark indices Sensex and Nifty declined by up to 6%. The broader BSE Midcap and BSE Smallcap indices fell by 10.5% and 13.8%, respectively. Equity inflows plunged by 26.2% to ₹29,303 crore, according to Amfi data.
Among Nifty 50 stocks, mutual funds were net buyers in 35 stocks (MoM percent change in shares). The highest MoM net buying was recorded in Dr. Reddy’s Laboratories at 11.8%, followed by Apollo Hospitals (10.5%), UltraTech Cement (8.1%), TCS (7.1%), and Power Grid Corporation (6.4%).
The highest net selling by MFs was seen in IndusInd Bank (-7.3%). Fund housed also sold in Shriram Finance (-6.0%), Wipro (-4.5%), Adani Ports (-4.4%) and Bajaj Finance (-3.8%).
Among Nifty Midcap 100 stocks, MFs were net buyers in around 58% stocks with major purchases in Yes Bank (33.4%), IDFC First Bank (18.1%), Prestige Estates (15.2%), Bandhan Bank (12.5%) and AU Small Finance (10.6%).
MFs were net buyers of around 67% stocks in the Nifty Smallcap 100 index – Happiest Minds, Signature Global, Action Construction, IIFL Finance and Glenmark Pharma caught MFs’ fancy.