The month of April saw a notable change in the sector and stock allocation of funds.
The weightage of healthcare, oil, autos, chemicals, metals and telecom increased month-on-month basis, a report titled 'Fund Folio' by Motilal Oswal Financial Services stated.
Weight of consumer, PSU Banks, Capital Goods, Technology, Retail, Private Banks, Utilities, NBFCs and Media moderated. Oil and Gas’ weight increased for the second consecutive month to climb a new high of 9.1 percent.
Consumer stocks' weight moderated after rising for 3 consecutive months to 8.8 percent.
As a result, the sector slipped to the third position in the allocation of mutual funds, making way for the Oil and Gas sector at second position.
Healthcare sector’s weightage reached a 40-month high of 8 percent
Stocks exhibiting a maximum increase in value MoM were Reliance Industries (up Rs 113.1 billion) HDFC Bank (Rs 81.6 billion) ICICI Bank (Rs 76.3 billion), Bharti Airtel (Rs 45.8 billion) and Infosys (Rs 43.3 billion)
In terms of value decline MoM, the top five stocks were HUL (Rs 7.3 billion), Tech Mahindra (Rs 5.3 billion), Aditya Birla Fashion (Rs 5 billion), RBL Bank (Rs 4.4 billion) and SBI (Rs 3.8 billion).
Last month, mutual funds were net buyers in 44 percent of stocks.
Highest net buying in April over March was witnessed in Wipro (up 23.7 percent), Hero Moto (up 13.6 percent), Eicher Motors (up 12.7 percent), UPL (up 10.1 percent) and UltraTech (up 5.5 percent).
In April, Nifty bounced back 14.7 percent, the best month since May 2009.
Improvement in performance of global markets, intermittent news flow around development of the COVID-19 vaccine, significant moderation in FII selling and deep value in several sectors provided an encouraging backdrop for Indian markets to recoup some of their previous losses in the month of April.
In April, the total assets under management of the mutual fund industry stood at 23.52 lakh crore down from Rs 24.70 lakh crore in March 2020.
Overall, the equity category witnessed net inflows of Rs 6,213 crores
Contribution of systematic investment plans (SIPs) moderated to Rs 83.8 billion down 3 percent MoM after hitting a new high of Rs 86.4 bln in March 2020.