During these trying times when benchmark stock indices Sensex and Nifty have tanked 25% since the beginning of the year, and the equities have been beaten down relentlessly, it sometimes could be difficult to find the right kind of investment advice.
During these trying times when benchmark stock indices Sensex and Nifty have tanked 25% since the beginning of the year, and the equities have been beaten down relentlessly, it sometimes could be difficult to find the right kind of investment advice. To take some hints, investors can look up what some of the big guns of the mutual fund industry are buying. In the month of March, inflows into equity funds increased to Rs 11,723 crore, up from Rs 10,796 crore in February, hinting at some serious buying taking place. So what stocks did some of the biggest mutual funds in India buy in March? Here is a list:
Topping the list of stocks bought by HDFC asset management company in March was Suprajit Engineering Limited, a stock that has seen a 40% fall in share price since January 1. HDFC AMC bought 64 lakh shares of the company, according to ICICI Securities. It held 1 lakh shares in February, making it the most bought scrip in percentage terms. Tata Consumer products was the second largest stock to be bought by HDFC AMC, accumulating 141 lakh shares of the same. Tata Consumer saw a 40% correction in the month of March. Radico Khaitan was the third on the list where HDFC increased its holding by 1057% in the month of March.
ICICI Prudential AMC
The number one bet for ICICI Prudential was Tata Consumer products, buying 176 lakh shares of the Tata group company. The second most bought share by ICICI Prudential was a PSU company, National Mineral Development Corporation. The holding increased in the month of March by 450%. Next on ICICI Prudential’s bucket list was Jubilant FoodWorks Ltd, buying 9 lakh shares of the company as the scrip fell 28 per cent from recent highs.
Nippon AMC increased its holdings in Bayer CropScience Ltd. by 403%, according to ICICI Securities, making it the most bought share by the AMC. For its second most bought share in March, Nippon AMC moved towards the banking sector, adding 28 lakh shares of Bandhan Bank. Although the private-sector lender has seen its share price drop over 60% since the beginning of the year, the 3.5% jump in April so far makes points that Nippon AMC’s bet could pay off. Third on Nippon AMC’s list was IT major Tata Consultancy Services. The IT services industry fared better among other sectors in March as the fear of coronavirus wiped out gains, making TCS an attractive bet.
According to AMFI, SBI mutual funds is the largest asset manager in India with Rs 3,73,536.60 crore in assets. According to ICICI Securities, SBI AMC’s top buy was Navin Fluorine International Ltd, a stock that SBI AMC did not hold in February. The second and the third spot were taken by the BFSI industry with RBL Bank and Muthoot Finance. The shares of RBL Bank, held by SBI AMC, jumped 466% in March while that of Muthoot Finance went up by 170%.