Mutual fund data for the month of January shows some interesting trends in which MF houses have been seen buying tech and financial stocks. Additionally, they were also seen taking prominent positions in shows where the peg lock period opened last month.
According to research by ICICI Direct, inflows (excluding NFO) into equity funds reached an all-time high at Rs 14,900 crore in January 2022, from Rs 12,600 in December 2021.
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Among technology stocks, the majority of mutual fund companies bought HCL Technology in January. According to Edelweiss Fund Insight (EFI), mutual funds spent 16 billion rupees (1600 crore) in January. Tech Mahindra has attracted investments worth Rs 15.5 billion (1550 crore).
Among financial stocks, mutual funds bought the most HDFC at Rs 14.2 billion (1,420 crore) and Bajaj Finance (INR 13.2 billion) was the other NBFC stocks to attract mutual funds in January.
“They slightly reduced their holdings in ONGC (Rs 11.2 billion), Bharti Airtel (Rs 8.9 billion) and Maruti Suzuki (Rs 6.5 billion),” the Edelweiss report said.
Shows where the anchor lock opened in January
For the issues in which Anchor-Lock In opened in January, fund companies raised stakes in most holdings. Major additions were made in Tega Industries, which saw additions of 10 lakh shares worth Rs 50 crore while the value of mutual funds in the stock stood at Rs 272 crore in January. Other major additions were Metro Brands (0.59 billion), Shriram Properties (0.09 billion), RateGain Travel (0.26 billion), Medplus Health (0.33 billion), Star Health and Allied Insurance (0. 09 billion), Anand Rathi (0.04 billion) and
The main reductions of these issues were CMS Info Sys (Rs 0.12 billion, Data Patterns (Rs 0.03 billion) and CE Info Systems (Rs 0.06 billion). Note that the value is in terms of money which was added or removed during the month of January.
Key additions and reductions in the mid-cap category
Among mid-sized stocks, the top mutual fund additions in January were Tata Communication Rs 6.1 billion, Max Financials (Rs 4.3 billion), ZEE Entertainment (Rs 3.7 billion) and LIC Housing Finance ( Rs 3.5 billion).
The main cuts among mid-cap stocks were Deepak Nitrite (Rs 3.1 billion), Voltas (Rs 2.5 billion), Colgate-Palm (Rs 2 billion) and KPIT Technology (Rs 1.9 billion).
Key additions and reductions in the small cap category
At Rs 1.9 billion (Rs 190 crore), mutual fund companies bought the most Indiabulls in the small cap category. Neogen Chemical (Rs 1.7 billion), Balrampur Chini (Rs 1.3 billion) and Price Pipes (Rs 1.1 billion) were key additions in the small cap segment. The main cuts among small cap stocks were Granules India (Rs 0.9 billion), PVR (Rs 0.9 billion), KEI Ind (Rs 0.9 billion) and CE Info Sys (Rs 0.7 billion) .
Stocks with a market capitalization of Rs 10,000 crore to Rs 40,000 crore were placed in the mid-cap segment, while the SmallCaps category is below the market capitalization of 10,000 crore.