Mukesh Ambani-led Reliance Industries may have the coveted title of being India’s most valued company with a market capitalisation of more than Rs 5.8 lakh crores as on date, however, RIL shares seem to have lost the favour of top mutual fund managers, as RIL has slipped out of the top 10 holdings of Mutual Funds in September-2017. In an interview to ET Now, Kaustubh Belapurkar, Director Fund Research, Morningstar Investment Adviser India Private Ltd said, “ If you just look at the list of top 10 stocks held by funds, Reliance used to be one among top 10, it has actually slipped out of the top 10 holdings.” According to the expert, the top 10 holdings are skewed in favour of banking stocks. “There are five banks in the top 10, and HDFC, so six from pretty much the same sector. The you have ITC, Maruti Suzuki ,Infy (Infosys) in top 10,” Kaustubh Belapurkar told ET Now.

Track live stock prices: Reliance Industries; ITC;  Maruti Suzuki; HDFC; ICICI Bank; Kotak Mahindra; IndusInd

Explaining what exactly the mutual fund managers have been buying throughout the year Kaustubh Belapurkar said, “I think the fund managers have been very selective of the PSUs over the years. SBI has been that one counter where they have aggressively added positions, maybe a little bit in BoB and PNB, but, largely on the PSU front its only been SBI. But otherwise, HDFC, ICICI Bank, Kotak Mahindra, IndusInd, are some of the large plays where managers have been aggressively adding positions. Axis has been one counter where we have seen a little bit of selling, in the start and the middle of the year.”

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At the time when foreign investors hit the exit door, domestic institutional investors stood net buyers in equity market in September. They bought shares worth over Rs 21,000 crore during the month and stood net buyers in equities in 19 trading sessions and net sellers in 2 sessions.

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According to data with Association of Mutual Funds in India (Amfi), equity and equity-linked schemes attracted over Rs 80,000 crore, and balanced funds received more than Rs 47,000 crore. Besides, Rs 28,600 crore was invested in liquid or money market fund category.