Ahead of Q2 earnings and following Finance Minister Nirmala Sitharaman’s GST 2.0 announcement, the Rs 78 lakh crore mutual fund industry rebalanced portfolios in September by increasing exposure to banks, automobiles, and select consumer and insurance stocks through strategic reshuffling.
According to a report by Motilal Oswal Financial Services, in September, mutual funds showed interest in NBFCs, PSU banks, metals, automobiles, capital goods, oil & gas, utilities, and real estate, leading to a month-on-month (MoM) rise in their weights.
Also Read | How to steer clear of common mistakes in mutual fund investments this Diwali
On the other hand, sectors such as technology, private banks, healthcare, consumer, retail, telecom, chemicals, consumer durables, and media saw a month-on-month moderation in weights.
The allocation in PSU banks and NBFCs was increased by mutual funds, leading their weight to 17-month high levels.
The top sectoral holding for mutual funds in September was private banks, which had the highest weightage of around 17.3%. The other sectors that gained mutual fund interest were automobiles (8.7%), technology (7.5%), and healthcare (7.4%).
A report by Nuvama Institutional Equities stated that the key additions in the mutual fund industry were Kotak Bank and ICICI Bank, with mutual funds buying shares of Kotak Bank and ICICI Bank worth Rs 3,900 crore and Rs 3,700 crore, respectively.
A notable reduction was seen in Axis Bank (Rs 2,800 crore), Maruti Suzuki (Rs 2,400 crore), and Bajaj Finance (Rs 2,200 crore).
The Nuvama report highlights that in the largecap segment, key buying was seen in HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Mahindra & Mahindra, and Tata Steel, while notable selling occurred in Trent, Reliance Industries, Marico, NTPC, and ICICI Lombard.
In the midcap space, mutual funds bought Dalmia Bharat, Hero MotoCorp, Indus Towers, Ashok Leyland, and AU Small Finance Bank, while offloading shares of Max Healthcare, Bharat Forge, HDFC AMC, Container Corporation, and NMDC.
In the smallcap segment, significant buying was seen in Aptus Value Housing, Multi Commodity Exchange, HealthGlobal, Asahi India Glass, and PNB Housing, while notable selling was recorded in Hitachi Energy, Tega Industries, BSE, Gabriel India, and KNR Constructions.
For the third consecutive month, mutual funds added these largecap stocks in their portfolios: Reliance Industries, TCS, ICICI Bank, SBI, and Infosys, while trimming exposure to Coal India, LTIMindtree, Bosch, HDFC AMC, and Muthoot Finance.
Also Read | Mutual funds raise investments in PSU banks in September, weight hits 17-month high
Bank of Maharashtra, Blue Star, Gujarat Fluorochemicals, Global Health, and SJVN were the midcap stocks that were added by the mutual funds for the third consecutive month, whereas exposure was reduced in ACC, KPIT Technologies, Tata Technologies, Deepak Nitrite, and TVS Holdings.
For the third consecutive month, mutual funds consistently added Shakti Pumps, NESCO, Azad Engineering, KRBL, and HealthGlobal, while trimming positions in Graphite India, Genus Power, Power Mech Projects, Aditya Birla Fashion, and Thomas Cook (India).
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According to a report by Motilal Oswal Financial Services, in September, mutual funds showed interest in NBFCs, PSU banks, metals, automobiles, capital goods, oil & gas, utilities, and real estate, leading to a month-on-month (MoM) rise in their weights.
Also Read | How to steer clear of common mistakes in mutual fund investments this Diwali
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On the other hand, sectors such as technology, private banks, healthcare, consumer, retail, telecom, chemicals, consumer durables, and media saw a month-on-month moderation in weights.
The allocation in PSU banks and NBFCs was increased by mutual funds, leading their weight to 17-month high levels.
The top sectoral holding for mutual funds in September was private banks, which had the highest weightage of around 17.3%. The other sectors that gained mutual fund interest were automobiles (8.7%), technology (7.5%), and healthcare (7.4%).
A report by Nuvama Institutional Equities stated that the key additions in the mutual fund industry were Kotak Bank and ICICI Bank, with mutual funds buying shares of Kotak Bank and ICICI Bank worth Rs 3,900 crore and Rs 3,700 crore, respectively.
A notable reduction was seen in Axis Bank (Rs 2,800 crore), Maruti Suzuki (Rs 2,400 crore), and Bajaj Finance (Rs 2,200 crore).
The Nuvama report highlights that in the largecap segment, key buying was seen in HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Mahindra & Mahindra, and Tata Steel, while notable selling occurred in Trent, Reliance Industries, Marico, NTPC, and ICICI Lombard.
In the midcap space, mutual funds bought Dalmia Bharat, Hero MotoCorp, Indus Towers, Ashok Leyland, and AU Small Finance Bank, while offloading shares of Max Healthcare, Bharat Forge, HDFC AMC, Container Corporation, and NMDC.
In the smallcap segment, significant buying was seen in Aptus Value Housing, Multi Commodity Exchange, HealthGlobal, Asahi India Glass, and PNB Housing, while notable selling was recorded in Hitachi Energy, Tega Industries, BSE, Gabriel India, and KNR Constructions.
For the third consecutive month, mutual funds added these largecap stocks in their portfolios: Reliance Industries, TCS, ICICI Bank, SBI, and Infosys, while trimming exposure to Coal India, LTIMindtree, Bosch, HDFC AMC, and Muthoot Finance.
Also Read | Mutual funds raise investments in PSU banks in September, weight hits 17-month high
Bank of Maharashtra, Blue Star, Gujarat Fluorochemicals, Global Health, and SJVN were the midcap stocks that were added by the mutual funds for the third consecutive month, whereas exposure was reduced in ACC, KPIT Technologies, Tata Technologies, Deepak Nitrite, and TVS Holdings.
For the third consecutive month, mutual funds consistently added Shakti Pumps, NESCO, Azad Engineering, KRBL, and HealthGlobal, while trimming positions in Graphite India, Genus Power, Power Mech Projects, Aditya Birla Fashion, and Thomas Cook (India).
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