During a period of significant corrections in equity markets last month, mutual funds increased their investments in private banks, NBFCs, healthcare, telecom, and metals while reducing exposure to capital goods, technology, automobiles, consumer, oil and gas, utilities, public sector banks, retail, and infrastructure.
Private banks remained the largest sector holding for mutual funds, accounting for 18.5% of total allocation. This was followed by technology at 9.3%, automobiles at 8.1%, and healthcare at 7.6%.
Media, capital goods, textiles, infrastructure, and chemicals experienced notable declines in value on a month-on-month basis.
Total assets under management (AUM) for mutual funds dropped by 4.04% to ₹64.53 lakh crore, following a decline of up to 6% in benchmark indices Sensex and Nifty. The broader BSE Midcap and BSE Smallcap indices saw even sharper declines, falling by 10.5% and 13.8%, respectively. Equity inflows decreased by 26.2% to ₹29,303 crore, according to Amfi data.
Among Nifty 50 stocks, mutual funds were net buyers in 35 stocks. The largest month-on-month net buying was observed in Dr. Reddy’s Laboratories at 11.8%, followed by Apollo Hospitals at 10.5%, UltraTech Cement at 8.1%, TCS at 7.1%, and Power Grid Corporation at 6.4%.
The highest net selling by mutual funds was recorded in IndusInd Bank at -7.3%, followed by Shriram Finance at -6.0%, Wipro at -4.5%, Adani Ports at -4.4%, and Bajaj Finance at -3.8%.
Among Nifty Midcap 100 stocks, mutual funds were net buyers in around 58% of stocks, with significant purchases in Yes Bank at 33.4%, IDFC First Bank at 18.1%, Prestige Estates at 15.2%, Bandhan Bank at 12.5%, and AU Small Finance at 10.6%.
Mutual funds were net buyers in approximately 67% of stocks within the Nifty Smallcap 100 index. Stocks that attracted increased investment included Happiest Minds, Signature Global, Action Construction, IIFL Finance, and Glenmark Pharma.
