Among largecaps, Piramal Enterprises, UPL, JSW Steel, NMDC and Petronet LNG witnessed highest buying by fund houses during July 2020, said ICICI Direct.
While market rallied in July, mutual funds pulled out as there was outflow from equity funds for the first time in last four years on account of profit booking and redemption pressure.
In July, benchmark indices gained around 7.5 percent each followed by similar gains in June as well.
"Equity funds witnessed outflows in July of Rs 2,480 crore. Few investors seem to have used the recent rally to book profits/reduce equity exposure as gross inflows remain stable while redemption increased in the last two months," said ICICI Direct.
In fact, it has been declining for last few months. The flow into equity funds fell considerably in June to Rs 241 crore against Rs 5,257 crore in May, Rs 6,213 crore in April and Rs 11,723 crore in March when the market actually had seen the highest monthly correction of 23 percent since global financial crisis of 2008.
"Redemptions across most categories led to open-ended equity schemes recording their first cumulative net outflow since April 2019, when the Association of Mutual Funds in India (AMFI) began disseminating data in the current format. Net flows in the category have been on a downward spiral since April," CRISIL said.
Among largecaps, Piramal Enterprises, UPL, JSW Steel, NMDC and Petronet LNG witnessed highest buying by fund houses during the month of July 2020, said ICICI Direct.
However, largecap stocks, which saw highest selling by AMCs at a consolidated level were DLF, Siemens, Bharti Infratel, Eicher Motors and Punjab National Bank, the brokerage added.
Piramal Enterprises remained in the top five buying list for second consecutive month. JSW Steel was also in the top 10 buying list whereas NMDC was in the selling list in month of June.
Among midcaps, stocks like Yes Bank, Glenmark Pharma, Mindtree, PI Industries and PVR saw highest buying by AMCs during July, whereas selling was seen in Vodafone Idea, M&M Financial Services, Future Retail, Aavas Financiers and SAIL, said ICICI Direct.
IT company Mindtree was in the top five buying list in June as well, while Glenmark was in top five selling list in June. Vodafone Idea and SAIL continued to be in the top five selling list in June as well as in July.
In smallcaps, stocks like KRBL, IndiaMART InterMESH, Arvind Fashions, EID Parry and TeamLease Services witnessed highest buying in July, ICICI Direct said.
Smallcap stocks, which saw selling by AMCs were FDC, Lakshmi Machine Works, Tejas Network, eClerx Services and Future Lifestyle Fashions, the brokerage added.
The broader markets also remained in momentum as the BSE Midcap and Smallcap indices gained over 5 percent in July, underperforming benchmark indices but if we compare them from March lows performance then all goes hand-in-hand.
In July, SIP inflows have also gradually been moderated a bit at Rs 7,831 crore, against Rs 7,927 crore in June, Rs 8,123 crore in May and Rs 8,376 crore in April.
The SIPs have succumbed to job loss pressures and poor market outlook and clarity, Narnolia feels.
FIIs net inflow also reduced to Rs 2,490.19 crore in cash segment in July, against Rs 5,492.95 crore in June and Rs 13,914.49 crore in May.
But the asset base of India's mutual funds (MF) industry swelled by over 6 percent on-month in July to Rs 27.12 lakh crore, marking the fourth straight month of gains.
"Overall assets under management (AUM) were last seen over the Rs 27 lakh crore level in February, before falling precipitously in March when the market witnessed a correction due to COVID-19 pandemic and ensuing lockdown. Mark-to-market (MTM) gains in equities and firm inflows in debt funds contributed to the July increase. Continued strong interest in gold and equity exchange traded funds (ETFs) also played a role," CRISIL said.
Net inflows from debt funds stood at Rs 91,391 crore in July. The number has been unusually positive given the market sentiments towards debt funds a few months ago.Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.