Opportunity in market correction: New midcap stocks that MFs added lately

Global equity markets including India were on correction mode in October mainly due to the global events such as rising US Treasury yields and the geopolitical conflict between Israel and Hamas. Nifty Midcap 100 index (-4.1%) underperformed the other broader indices - Nifty 50 (-2.8%) and Nifty smallcap (-0.8%) - during the month. The correction has provided fund managers the opportunity to re-enter or add the quality midcap stocks with attractive valuations. Here are the top midcap stocks that were bought afresh by the actively managed mutual funds in October 2023. Source: ACEMF. Data as of October 30, 2023

One97 Communications
No. of active equity schemes newly added the stock in October: 23
Total no. of active equity schemes holding the stock: 58
Who added?: Quant Teck, UTI Innovation and Union Focused Fund

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Dixon Technologies (India)
No. of active equity schemes newly added the stock in October: 21
Total no. of active equity schemes holding the stock: 105
Who added?: Edelweiss Focused Equity, HSBC Consumption and Canara Rob Infrastructure Fund

Also see: Macro proof your SIPs with this MC30 midcap fund by Edelweiss MF

Shriram Finance
No. of active equity schemes newly added the stock in October: 13
Total no. of active equity schemes holding the stock: 94
Who added?: Union Midcap, Edelweiss Multi Cap and SBI Flexicap Fund

Tata Communications
No. of active equity schemes newly added the stock in October: 10
Total no. of active equity schemes holding the stock: 57
Who added?: Quant ESG Equity, Aditya Birla SL Equity Savings and ICICI Pru Midcap Fund

Also see: Long-term smallcap companies that equity savings funds put their money on

Aurobindo Pharma
No. of active equity schemes newly added the stock in October: 7
Total no. of active equity schemes holding the stock: 81
Who added?: HDFC Pharma and Healthcare, UTI Multi Asset Allocation and Mahindra Manulife Mid Cap Fund

Colgate-Palmolive (India)
No. of active equity schemes newly added the stock in October: 7
Total no. of active equity schemes holding the stock: 38
Who added?: NJ ELSS Tax Saver, Shriram Flexi Cap and SBI Dividend Yield Fund

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Info Edge (India)
No. of active equity schemes newly added the stock in October: 7
Total no. of active equity schemes holding the stock: 73
Who added?: UTI Innovation, Franklin India Equity Advantage and Bandhan Core Equity Fund

REC
No. of active equity schemes newly added the stock in October: 7
Total no. of active equity schemes holding the stock: 114
Who added?: SBI PSU, NJ Flexi Cap and ITI Mid Cap Fund

Also see: Contrarian bets in market peaks: Midcap stocks that have turned contra fund favourites

The Ramco Cements
No. of active equity schemes newly added the stock in October: 7
Total no. of active equity schemes holding the stock: 59
Who added?: Taurus Infrastructure, HSBC Business Cycles and LIC MF Equity Savings Fund

Union Bank Of India
No. of active equity schemes newly added the stock in October: 7
Total no. of active equity schemes holding the stock: 47
Who added?: Bank of India Mid & Small Cap Equity & Debt, Taurus Banking & Fin Serv and Bank of India Tax Advantage Fund

Also see: 15 smallcap gems that category III AIFs love to hold