This large-cap stock is a darling among mutual fund managers; do you own it?

By: | Updated: November 20, 2017 3:42 PM

Mutual fund managers have taken a fancy for the shares of this large-cap, with more than Rs 1,175 crore invested into the stock in the month of October alone.

Moody's India ratings upgrade, debt funds, mutual funds, Moody's India ratings upgrade to make debt funds attractive, 10-year yieldKaustubh Belapurkar of Morningstar says, “5.5% of the overall equity allocations of mutual funds is in HDFC Bank.” (Image: FE Graphic)

Mutual fund managers have taken a fancy for the shares of HDFC Bank, with more than Rs 1,175 crore invested into the scrip in the month of October alone. In an interview to ET Now, Kaustubh Belapurkar, Director Fund Research, Morningstar said, “ I think HDFC Bank has been the darling of the street for a long time. 5.5% of the overall equity allocations of mutual funds is in HDFC Bank. This is by far the largest holding, and month on month we’ve seen additions to that. The street is preferring to invest in private banks, and this is clearly the outshining star in the space.” Shares of HDFC bank have returned more than 51% in the year so far, as compared to BSE Sensex returns of 25% in the same period. HDFC Bank shares were trading at Rs 1,837, up by more than 0.65% since yesterday’s close. 

Track live stock price: HDFC Bank

Just last month, he had pointed out that India’s most valued company Reliance Industries no longer forms part of the top ten fund holdings.  “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,” Kaustubh Belapurkar pointed out.

While the top ten continue to be dominated by financials, the expert points out that mutual funds have also added aggressively in the pharma space. “An interesting trend in October is that the pharma counter has seen a lot of buying. Sun Pharma clearly pops in one of the top ten buys for the month. There are other pharma stocks too, that have seen some buying.”

In the month of October, mutual funds had taken high exposure to IPOs.  Interestingly, India Energy Exchange stood out as the stock into which mutual funds added positions. Top mutual funds including Aditya Birla Sun Life AMC, Axis Mutual Fund, DSP Blackrock, ICICI, Sundaram and IDBI among others collectively invested a staggering Rs 315.48 crore into the shares of the company in October alone, data compiled by IDBI Capital showed. Mutual funds also lapped up the shares of Godrej Agrovet Ltd, with Rs 270 crore invested by them in the month of October.

Another, centurion IPO MAS Financial Services Ltd which was oversubscribed by 129 times last month, had seen heavy demand from mutual funds in October. More than ten mutual funds including prominent names like Reliance, HDFC and ICICI had collectively invested a staggering Rs 237 crore in October, shows the report. While the collective holdings stood at the numbers mentioned above, it’s not immediately clear if the funds had subscribed to the shares in the IPO or increased their positions later.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition