Mutual funds continued to reshuffle their equity portfolios in April, increasing exposure to sectors such as telecom, mid-sized financial institutions, IT and industrials, according to data from primemfdatabase.com.
The month also saw mutual funds reducing their holdings in around 367 stocks while increasing stakes in approximately 618 stocks, including new entries and complete exits. Read More
Shares of Vodafone Idea were among the leading purchases, where mutual funds bought an additional 34.09 crore shares in April, increasing their total holding from 336.1 crore to 370.2 crore shares. The financial services sector too attracted strong interest, with mutual funds buying 18.47 crore shares of IDFC First Bank. Similarly, Ujjivan Small Finance Bank saw mutual fund holdings rise by 6.16 crore shares, nearly doubling the previous month’s number of shares.
Among largecaps, Tata Steel drew considerable attention, as mutual fund holdings in the stock increased from 151.2 crore to 162 crore shares, indicating growing investor appetite for cyclical and commodity-driven sectors amid hopes of an industrial revival.
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In the mid and smallcap banking space, Yes Bank, RBL Bank and Equitas Small Finance Bank recorded addition of 4.62 crore, 3.03 crore, and 2.86 crore shares by mutual funds, respectively.
Consumer discretionary stocks too attracted demand. Samvardhana Motherson and Vishal Mega Mart saw mutual fund holdings rise by 3.64 crore and 2.55 crore shares, respectively. In the IT sector, Infosys recorded a 2.09 crore share increase.
Industrial companies witnessed significant inflows, led by Suzlon Energy, BHEL, NBCC India each posting a rise of 1.84-1.87 crore shares.
Read More: Mutual funds turned buyers in IT during April as FIIs rushed to exit
On the selling side in April, ITC saw the largest reduction, with mutual funds offloading 6.59 crore shares, reducing their total holding from 161.1 crore to 154.5 crore shares. In the energy sector, GAIL India saw funds selling 4.73 crore shares, while Indraprastha Gas and Bharat Petroleum Corporation saw reductions of 1.66 crore and 1.61 crore shares, respectively.
Defence major Bharat Electronics saw a net selling of 2.74 crore shares, and Power Grid Corporation saw a decline of 2.55 crore shares in April. In the largecap space, mutual funds reduced their stake in Jio Financial Services by 2.35 crore shares. Within consumer discretionary, Eternal and Ola Electric saw declines of 2.29 crore and 1.8 crore shares, respectively.
Among fresh additions, newly-listed Ather Energy debuted on mutual funds' holdings in April. Funds including Samir Arora-backed Helios Capital and Aditya Birla Sun Life AMC acquired 2.07 crore shares, at a market value of Rs 664.01 crore. Other additions included Capital Infra Trust (1.65 crore shares valued at Rs 148 crore), Yasho Industries (21,053 shares valued at Rs 3.54 crore), Associated Alcohols & Breweries (2,626 shares valued at Rs 29 lakh), and Steelcast (2,912 shares valued at Rs 25 lakh).
In terms of complete exits, mutual funds sold off their entire stakes in smallcap companies such as Goldiam International, Kesoram Industries, Zota Health and Xelpmoc Design & Tech.
According to Motilal Oswal's Fund Folio report, mutual funds were net buyers in 52% of the stocks in the Nifty 50 index during April. Funds were net buyers in 60% of the Nifty Midcap 100 and 69% of the Nifty Smallcap 100 index respectively, indicating broader institutional interest across segments.
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