Many retail investors prefer to walk into the steps of heavyweight individual and institutional investors when it comes to making investment decisions. The mindset behind this approach is that large investors such as mutual funds, ace investors, endowment funds, etc. have a better understanding of the stock market because of their research capabilities.
Unlike the shareholding data of other larger investors which gets out on a quarterly interval, the mutual fund investments data is available on a dynamic basis with various research houses providing a monthly update on the stocks bought and sold by mutual funds in a said month.
During the month of February, the equity inflows other than new fund offers or NFOs stood at Rs 10,600 crore in February compared to Rs 11,300 crore in January this calendar year. As for the total inflows including NFOs, they were Rs 15,700 crore and Rs 12,500 crore in February and January respectively.
The SIP investments were slightly less at Rs 13,686 crore in February against Rs 13856 crore in January. The reason behind this has been attributed to fewer working days in February.
Even though the Sensex dropped 1% in February due to the Adani Group crises, the overall investors’ faith remained strong in the financial markets with continued capital supply.
After the Hindenburg report was released, the MF trimmed their stakes in different companies of the Adani Group by a large margin. Adani Ports and Special Economic Zones, Ambuja Cements, and Adani Enterprises were the three key Adani stocks among others which saw huge sell-off.
Talking about the purchases, a report from ICICI Direct Research stated that in the large-cap category, the mutual funds piled up the shares of Interglobe Aviation, GAIL (India), Macrotech Developers, Tata Motors, Tech Mahindra, LTIMindtree, Dabur India, Info Edge (India), Havells India, and Hindustan Zinc.
In the mid-cap space, the fund managers picked Syngene International, Star Health and Allied Insurance Company, One97 Communications, Biocon, Coforge, 3M India, HDFC AMC, Gujarat Fluorochemicals, Dr Lal Pathlabs, and Blue Dart Express.
Furthermore, the top ten small-cap companies which mutual funds bought in February were Heritage Foods, PVR, Indiabulls Housing Finance, Zensar Technologies, Safari Industries (India), Syrma SGS Technology, Privi Speciality Chemicals, Aavas Financiers, Kaynes Technology India, and Nazara Technologies.
Written by Vikalp Mishra
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