In terms of stocks, ICICIdirect list out top 10 largecaps which saw buying by fund managers in April include names like Vodafone Idea, DLF, BHEL, Indiabulls Housing Finance and SAIL.
Mutual fund (MF) inflows moderated in April even though Indian stock benchmarks rewrote history. The Sensex touched a fresh record high of 39,487 on April 18 while the Nifty50 hit 11,856 the same day.
The industry kicked off 2019-20 on a positive note as total asset under management (AUM) increased 4.2 percent month-on-month to Rs 24.8 trillion in April, primarily led by inflows in income and debt-oriented schemes.
However, equity inflows, including ELSS and arbitrage, saw a slowdown, with net inflows of Rs 5,800 crore in April 2019, compared to Rs 7,800 crore recorded in March 19, data showed,
However, April flows cannot be compared to the previous month as the former is in the new format prescribed by SEBI, with focus on regrouped and reclassified schemes, Motilal Oswal said in a report.
“Net inflows moderated in April as nervousness gripped markets owing to credit events, rating downgrades, global trade war tensions, and uncertainty over the outcome of general elections,” it said.
Equity mutual funds attracted steady flows, largely due to investor participation through systematic investment plans (SIPs). Total amount garnered through SIPs stood at Rs 8,240 crore in April, which translates into over 2 percent rise on a month-on-month basis, and up about 23 percent from a year ago.
Experts feel that fund managers might be holding a small percentage of AUM in cash which could be deployed once the election uncertainty is over.
“Continued participation in SIPs indicates that stable broad-based equity participation continues. However, election-related volatility might have led mutual funds to increase their cash holdings in the short term,” Sahil Kapoor, Chief Market Strategist, Edelweiss Professional Investor Research, told Moneycontrol.
“According to our estimates, equity MFs currently hold around 4-5 percent in cash, which might be deployed post elections,” he said.
In terms of sectors, MFs saw a notable change in the sector and stock allocation of funds. On an MoM basis, fund managers increase their weight in technology, cement, healthcare, private banks and capital goods increased while that of PSU banks, utilities, NBFCs, oil & gas, autos, chemicals, and infrastructure moderated.
In terms of stocks, ICICIdirect lists out top 10 largecaps which saw buying by fund managers in April, which include names like Vodafone Idea, DLF, BHEL, Indiabulls Housing Finance and SAIL.
In midcaps, stocks like Dish TV, GMR Infra, Alkem Laboratories, Gujarat Gas and Crompton Greaves Consumer Electric Ltd witnessed buying during April 2019
In small caps, stocks like Welspun Corp, CCL Products, Sunteck Realty, India Energy Exchange and Bharat Dynamics witnessed highest buying during April 2019
Stocks which witnessed selling:
In the largecap space, stocks which saw selling by AMCs on a consolidated level were Coal India, ONGC, Adani Ports, Wipro and Yes Bank, said the ICICIdirect report.
Few of the stocks in the list were a part of CPSE ETF, which may have witnessed selling due to redemption in ETF, said the report.
Small cap stocks, which saw selling by AMCs were Parag Milk, Max India, Can Fin Homes, PVR, and Balrampur Chini Mills.
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