Punjab National Bank, SBI Life among top mutual fund buys in May; here’s what AMCs bought, sold

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June 17, 2021 11:56 AM

Punjab National Bank, SBI Life Insurance Company, and Indus Towers were the three top large-cap buys by Mutual Funds in the month of May.

Mutual fundsMutual funds increased exposure to PSU banks to a 15-month high in May. (Image: REUTERS)

Punjab National Bank, SBI Life Insurance Company, and Indus Towers were the three top large-cap buys by Mutual Funds in the month of May, data sourced by ICICI Direct showed. Meanwhile, Hindustan Zinc, Britannia Industries, and Colgate Palmolive were the most sold large-cap stocks in the previous month. The mutual fund industry saw net inflows of Rs 10,500 crore in May — highest since March 2020 — as stock markets resumed rally and inched close to all-time highs. The assets under management of domestic equity funds increased 7.7% on-month to Rs 11.1 lakh crore during the month.

Most purchased stocks

Punjab National Bank was the most purchased large-cap stock by mutual funds in May. The number of shares of the lender held by mutual funds increased 88% between April and May. This was followed by a 40% increase in SBI Life Insurance stocks and a 21% increase in Indus Towers.

Among Midcap stocks, Zee Entertainment Enterprises was purchased the most as AMC increased their holding in the firm by 60%. Zee was followed by Jubilant Pharmova, and Godrej Industries. Meanwhile, TCNS Clothing Co, TV18 Broadcast, and Magma Fincorp were the top smallcap buys.

Most sold stocks

Fund houses sold Hindustan Zinc stocks to decrease their stock holding in the company by 20.5%. The number of Britannia Industries’ shares held by mutual funds decreased by 12% in May and that of Colgate Palmolive dropped by 11.8%. Among midcap stocks, GMR Infrastructure, IIFL Wealth Management, and JSW Energy were the top stocks sold during the previous month. 

Sectoral allocation

Mutual funds increased exposure to PSU banks to a 15-month high in May. The weight of PSU Banks reached 3.4%, an increase of 30 basis points from the previous month and an increase of 120 basis points from the year-ago period. “As a result, the sector — which was in the thirteenth position a year ago — climbed to the ninth position in the allocation of mutual funds,” brokerage firm Motilal Oswal said in a report.

Other sectors where fund managers increased weights include oil & gas, automobiles, capital goods, insurance, and private banks. Meanwhile, healthcare, metals, consumer, technology, telecom, chemicals, consumer durables, and the cement sector reported a month-on-month decline in weights. At the end of May, Private Banks continue to dominate sectoral allocations with 18% weightage, followed by Technology with 11% weight, Healthcare with 7.6%, NBFCs with 7.4%, and oil and gas with 7.1% weightage.

SBI AMC top buys

-Tata Power Company number of shares held increased by 702%
-Ashok Leyland number of shares held increased by 686%
-Container Corporation Of India number of shares held increased by 590% 

HDFC Mutual Fund

-Zee Entertainment Enterprises number of shares held increased by 159%
-Tata Power Company number of shares held increased by 81%
-Bajaj Auto number of shares held increased by 60%

ICICI Prudential AMC

-Coromandel International number of shares held increased by 882%
-Hero MotoCorp number of shares held increased by 405%
-Punjab National Bank number of shares held increased by 224%

Aditya Birla Sunlife

-VIP Industries number of shares held increased by 595%
-Vedanta number of shares held increased by 334%
-Alkem Laboratories number of shares held increased by 216%

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