Auto major Maruti Suzuki India and food-delivery giant Zomato were among the most purchased stocks by mutual fund managers in the month of July, data sourced by Edelweiss Alternative Research showed. In terms of shares held, fund houses, as a whole, saw an increase of 1.5 million shares of Maruti Suzuki while the value soared to Rs 13.42 billion. Zomato shares increased by 107.3 million while their value was up in portfolios by Rs 5.02 billion. The month of July saw inflows into mutual funds slow down while stock indices zoomed higher.
Most bought and sold shares by mutual funds
Maruti Suzuki was the most purchased stock by fund houses, followed by Kotak Mahindra Bank. Fund managers bought 4.5 million shares of the private sector lender while the value increased by Rs 8.22 billion. Tata Motors shares in the mutual fund portfolio in June 2022 stood at 227.4 million while at the end of July the number had risen to 242.9 million. The value of the shares increased by Rs 6.98 billion.
HDFC Life Insurance shares increased by 10.4 million in the mutual fund portfolio while value soared by Rs 5.78 billion. Zomato, the stock that was at the end of receiving another valuation cut by Ashwath Damodaran was also on fund managers’ shopping list. The stock value soared by Rs 5.02 billion while the number of shares jumped by 107.3 million.
On the selling side, Housing Development Finance Corporation (HDFC) was the stock that was sold the most by fund managers. The number of shares at the end of July, compared to June were down 5.2 million while the value was down Rs 12.45 billion. ITC was also among the stocks sold as the number of shares dropped 28.8 million and the value of shares reduced Rs 8.73 billion. Other stocks that were sold include, SBI Life Insurance, Larsen & Toubro, Axis Bank, and Tata Steel.
In terms of sectoral ownership, most fund houses, except Aditya Birla mutual fund, are overweight on the Auto sector. All fund managers are overweight on capital goods while most are also overweight on the cement and construction sector with the exception of HDFC MF. Apart from Axis mutual fund and UTI MF all fund houses are underweight on the IT sector. Meanwhile, all mutual funds are underweight on oil & gas stocks, data showed.