Union Budget's infra boost puts bank stocks in sweet spot; Here's what MFs are banking on

Among the equity mutual fund categories, Banking and financial services sector funds were ahead of the pack in terms of return after the Finance Minister unveiled Union Budget 2023 on 1st February. While there were no direct proposals to benefit these sectors, the announcements related to capex and other areas will have a rub-off impact on the banking industry. Kranthi Bathini, Equity strategist at WealthMills securities pvt ltd says, “This budget has a lot of emphasis on infrastructure and CAPEX spending. Both public sector as well as private sector banks lend money to a majority of these infrastructure projects.” An expected borrowing program also cheered the banking sector. Here is the list of banking and financial services stocks that were newly added by the most number of actively managed mutual funds schemes over the last three months. These fund houses are now expected to benefit from new additions in bank stocks. Data as of December 2022. Source: ACEMF.

IndusInd Bank
No. of active schemes that newly added the stock: 39
Total no. of active schemes that hold the stock: 163
A sample of schemes that newly added the stock: Tata Quant, HDFC Business Cycle and Invesco India Largecap

RBL Bank
No. of active schemes that newly added the stock: 26
Total no. of active schemes that hold the stock: 41
A sample of schemes that newly added the stock: Quant ESG Equity, Tata Mid Cap Growth and Baroda BNP Paribas Banking and Fin Serv

HDFC Bank
No. of active schemes that newly added the stock: 21
Total no. of active schemes that hold the stock: 380
A sample of schemes that newly added the stock: Quant ESG Equity, IIFL ELSS Nifty 50 Tax Saver Index and HDFC Business Cycle

The Federal Bank
No. of active schemes that newly added the stock: 20
Total no. of active schemes that hold the stock: 118
A sample of schemes that newly added the stock: Canara Rob Mid Cap, Taurus Infrastructure and IDFC Midcap

Power Finance Corporation
No. of active schemes that newly added the stock: 17
Total no. of active schemes that hold the stock: 39
A sample of schemes that newly added the stock: Nippon India Quant, Kotak Multicap and JM Tax Gain

Axis Bank
No. of active schemes that newly added the stock: 15
Total no. of active schemes that hold the stock: 326
A sample of schemes that newly added the stock: SBI Multi Asset Allocation, Bank of India Small Cap and ITI Small Cap

Bank Of Baroda
No. of active schemes that newly added the stock: 15
Total no. of active schemes that hold the stock: 125
A sample of schemes that newly added the stock: Tata Quant, SBI Banking & Financial Services and Bank of India Large & Mid Cap Equity

Union Bank Of India
No. of active schemes that newly added the stock: 15
Total no. of active schemes that hold the stock: 21
A sample of schemes that newly added the stock: Quant Mid Cap, Tata Quant and Bank of India Mid & Small Cap Equity & Debt

State Bank Of India
No. of active schemes that newly added the stock: 13
Total no. of active schemes that hold the stock: 353
A sample of schemes that newly added the stock: Union Multicap, WOC Large Cap and HDFC Business Cycle

CreditAccess Grameen
No. of active schemes that newly added the stock: 12
Total no. of active schemes that hold the stock: 52
A sample of schemes that newly added the stock: Tata Mid Cap Growth, Union Multicap and LIC MF Multi Cap

Karur Vysya Bank
No. of active schemes that newly added the stock: 12
Total no. of active schemes that hold the stock: 39
A sample of schemes that newly added the stock: Baroda BNP Paribas Banking and Fin Serv, Tata Flexi Cap and UTI Multi Asset

Multi Commodity Exchange Of India
No. of active schemes that newly added the stock: 11
Total no. of active schemes that hold the stock: 59
A sample of schemes that newly added the stock: SBI Multi Asset Allocation, Bank of India Small Cap and ITI Small Cap

Bank Of India
No. of active schemes that newly added the stock: 10
Total no. of active schemes that hold the stock: 11
A sample of schemes that newly added the stock: Aditya Birla SL Equity Savings, PGIM India Equity Savings and LIC MF Multi Cap