Mutual funds deployed Rs 284 billion in secondary markets during the month with large-cap names such as Infosys and Reliance Industries among the top purchases along with ICICI Bank.
Domestic mutual funds saw yet another month of net inflows into equities in February. Mutual funds deployed Rs 284 billion (Rs 28400 crore)in secondary markets during the month with large-cap names such as Infosys and Reliance Industries among the top purchases along with ICICI Bank. On the other hand, IT major TCS was the most sold stock among fund managers, accompanied by Vedanta. During February, domestic markets tumbled more than 3% with most of the losses coming during the last few days as tensions between Russia and Ukraine escalated and crude oil prices skyrocketed. Domestic institutions have been net buyers on Dalal Street while foreign investors are net sellers for months now.
Large-cap additions and reductions
-Infosys was among the most purchased stocks by fund managers during the month of February. According to data sourced by Edelweiss, mutual funds owned 537.2 million shares of the IT giant at the end of January 2022, this increased to 554.8 million by the end of February.
-Reliance Industries Limited was the second most bought share with total shares held by fund houses soaring to 331.6 million, up from 321.6 million. In terms of value, the change was worth Rs 23.77 billion.
-ICICI Bank was also among the most purchased scrips. Edelweiss data showed fund managers held 1,555 million
shares of the lender at the end of February, up 27 million shares or worth Rs 20 million.
-The most sold stock was Tata Consultancy Services (TCS). Fund houses sold 2.6 million shares of the company worth Rs 9.23 billion.
-Vedanta was the other most sold share as investors trimmed their position by 16 million shares.
Mid-cap additions and reductions
-Newly listed (Vedant Fashions)Manyavar stocks were the most favoured among midcaps with fund managers buying 17.1 million shares of the company, Edelweiss data showed.
-Heavy buying was also seen in Zee Entertainment Enterprises (ZEE). Fund houses bought a total of 25 million shares of the firm, worth Rs 5.72 crore.
-Escorts was the most sold scrip among mid-caps as fund managers trimmed their position by 2.7 million.
–Punjab National Bank shares were also sold by fund houses, reducing their holdings by 75 million shares.
Fresh inclusions and complete exits
- In February, Axis mutual fund sold its entire stake in Escorts, along with 3 three other scrips. On the other hand, the fund house purchased Manyavar shares among others.
- DSP mutual funds also sold their stake in Escorts along with Sterlite Technologies while purchasing shares of Manyavar, PVR, and IRCTC.
- HDFC mutual fund was seen selling its entire stake in Abbott India, MRF, and Astral. The fund house added shares of Vodafone Idea and National Aluminium.
- ICICI Prudential mutual fund exited Metro Brands and Sansera Engineering — both recently listed to buy Manyavar shares.