The outflow from equity and equity-oriented funds continued for the seventh consecutive month in January despite the market hitting fresh record highs. Experts feel investors have been taking advantage of market rally to book profits.
The BSE Sensex as well as Nifty50 more than doubled from the lows of March 2020, surpassing 52,000 mark and 15,400 levels, respectively. The broader markets also participated in the bull run with buying in almost all sectors backed by better-than-expected quarterly corporate earnings, slew of measures taken by the government and RBI to revive the economy, controlled coronavirus infections and consistent FII inflow.
The equity mutual funds witnessed outflow of Rs 9,253 crore in January 2021, compared to Rs 10,147 crore in the previous month.
"The total outflow in the last seven months is now at around Rs 42,000 crore as investors continued to book profit at higher levels," ICICI Direct said.
All the equity & equity-oriented mutual funds, except sectoral funds and multi cap funds, saw outflows in January.
The contribution through Systematic Investment plans has been lesser than the previous month but still stays above the Rs 8,000 crore mark. "This shows slow moderation in the SIP market as well and these numbers should stabilise in the coming few months," said Narnolia Financial Services.
ICICI Direct collated a list of 10 stocks each from largecaps, midcaps and smallcaps categories which saw highest buying and selling in January.
Among largecaps, Punjab National Bank, Piramal Enterprises, SBI Card, Bajaj Holdings and Hindustan Aeronautics witnessed highest buying by asset management companies in January, whereas maximum selling was seen in Bandhan Bank, Godrej Consumer Products, Abbott India, HDFC AMC and Power Grid Corporation of India.
In the midcap space, the highest buying by mutual funds was seen in SAIL, Jubilant Pharmova, Polycab India, Vodafone Idea and L&T Finance Holdings.
Midcaps like BHEL, Astrazeneca Pharma, Castrol India, Mahanagar Gas, IndiaMART InterMESH and Alembic Pharmaceuticals witnessed highest selling by AMCs.
Indiabulls Real Estate, Kirloskar Oil Engines, Astec Lifesciences, Sudarshan Chemical Industries and EID Parry among smallcaps witnessed highest buying by mutual fund houses.
However, the maximum selling was seen in smallcaps like Schneider Electric Infrastructure, Burger King India, Lakshmi Machine Works, Route Mobile and Sequent Scientific.
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