Here is what MFs bought and sold in March; Jio Financial, Zomato, Hindalco, Kotak Bank in focus

On a cumulative basis, the top 20 mutual funds increased their equity exposure by Rs 23,500 crore in March.

While equity flows for the month of March were lower than the previous month, mutual funds continued to be active equity buyers while increasing their stake in companies across market capitalisations with a focus on financials, consumer and capital goods.

Mutual funds were mostly overweight on banks followed by auto, capital goods, utilities, telecom, healthcare, PSU Banks and Insurance. On a cumulative basis, the top 20 mutual funds increased their equity exposure by Rs 23,500 crore in March.

As per the latest edition of Motilal Oswal’s Fund Folio, mutual funds were net buyers in 52 percent of Nifty 50, 53 percent of Nifty Midcap 100, and 71 percent of Nifty Smallcap 100 companies.

In the Nifty 50 universe, funds increased their holdings in Jio Financial Services by 6.1 crore shares, an 18 percent rise and bringing their total investment value to Rs 9,150 crore. Tata Consumer Products followed, with mutual funds adding 1.03 crore shares, a 12.8 percent increase, increasing the value of their stake to Rs 9,080 crore. Eternal (Zomato) saw a 10.2 percent increase in mutual fund holdings, as funds added 16.5 crore shares, now valued at over Rs 36,090 crore.

On the other hand, Hindalco Industries saw the maximum selling, with mutual funds reducing their holdings by 6.3 percent. The second highest selling was seen in Kotak Mahindra Bank, where MFs reduced their stake by 5.3 percent and JSW Steel where stake was reduced by 4.5 percent.

In the Nifty Midcap 100 space, the highest month-on-month net buying was in Yes Bank (47.9 percent), Patanjali Foods (21.9 percent), HUDCO (55.6 percent) and IDFC First Bank (22.7 percent).

Patanjali Foods and Hindustan Zinc also saw buying, with mutual fund stakes rising by 21.9 percent and 18.7 percent, respectively. On the other hand, selling was seen in Adani Total Gas (52.2 percent), India Renewables (23.2 percent), Ola Electric (14.7 percent) and Godrej Properties (12.5 percent).

The small-cap space also saw heightened action. IIFL Finance saw a 36.7 percent surge in mutual fund shareholding, with funds holding 1.4 crore shares valued at Rs 460 crore, marking a 48.3 percent jump in value. Welspun Living also saw a sharp 21.5 percent rise in shares held, with mutual fund ownership climbing to 3.06 crore shares, pushing the value up by 53.6 percent to Rs 410 crore.

Castrol India recorded a 13.5 percent increase in shareholding, taking mutual fund holdings to 1.99 crore shares worth Rs 400 crore. HFCL saw a 12.4 percent increase in shares held, with mutual funds now owning 15.85 crore shares valued at Rs 1,250 crore. International Gemmological Institute registered a 10.2 percent increase in mutual fund shareholding, rising to 1.49 crore shares valued at Rs 570 crore.

On the other hand, CAMS Services saw a 10 percent reduction in mutual fund shareholding, with funds now holding 0.46 crore shares valued at Rs 172 crore. Aadhar Housing Finance experienced a 9.3 percent decline in MF-held shares, bringing total holdings down to 1.55 crore shares worth Rs 66 crore.

Similarly, CDSL, PG Electroplast, and Inventurus Knowledge Solutions were some of the other stocks that saw a decline in mutual fund holdings in March.