Mutual Funds data for the month of January shows some interesting trends wherein MF houses were seen buying technology and financial shares. Besides, they were also seen taking major positions in the issuances wherein anchor lock-In period opened in the last month.
As per ICICI Direct research, Inflows (excluding NFOs) into equity funds came in at record hight at Rs 14,900 crore in January 2022 as compared to Rs 12,600 in December 2021.
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Among tech shares, a majority of Mutual Fund houses bought HCL Technology in January. As per Edelweiss Fund Insight (EFI), Mutual Funds spent Rs 16bn (1600 crore) in January. Tech Mahindra attracted investment worth Rs 15.5 bn (1550 crore).
Among financial shares, mutual funds bought HDFC the most at Rs 14.2bn (1420 crore) and Bajaj Finance (INR 13.2bn) was the other NBFC shares to attract Mutual Funds in January.
“They slightly trimmed holdings in ONGC (Rs 11.2bn), Bharti Airtel (Rs 8.9bn) and Maruti Suzuki (Rs 6.5bn),” said Edelweiss report.
Issuances where anchor lock-in opened in January
For the issuances wherein Anchor-Lock In opened in January, fund houses raised stakes in most of the 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 share stood at Rs 272 crore in January. Othe rmajor additions were Metro Brands (0.59bn), Shriram Properties (0.09bn), RateGain Travel (0.26bn), Medplus Health (0.33bn), Star Health and Allied Insurance (0.09bn), Anand Rathi (0.04bn) and
Key Reductions in these issues were CMS Info Sys (Rs 0.12bn, Data Patterns (Rs 0.03bn) and CE Info Systems (Rs 0.06bn). Note the value is in terms of money that has been added or pulled out in the month of January.
Mid cap category key additions and reductions
Among midcap shares, key additions by Mutual Funds in January were Tata Communication Rs 6.1bn, Max Financials (Rs 4.3bn), ZEE Entertainment (Rs 3.7bn) and LIC Housing Finance (Rs 3.5bn).
Key reductions among mid cap stocks were Deepak Nitrite (Rs 3.1bn), Voltas (Rs 2.5bn), Colgate-Palm (Rs 2bn) and KPIT Technology (Rs 1.9bn).
Small cap category key additions and reductions
At Rs 1.9bn (Rs 190 crore), mutual fund houses bought the most Indiabulls Housing in small cap category. Neogen Chemical (Rs 1.7bn), Balrampur Chini (Rs 1.3bn) and Price Pipes (Rs 1.1bn) were key additions in the small cap segment. Key reductions among small cap stocks were Granules India (Rs 0.9bn), PVR (Rs 0.9bn), KEI Ind (Rs 0.9bn) and CE Info Sys (Rs 0.7bn).
Stocks with market cap of Rs 10,000 crore to Rs 40,000 crore have been put under midcap segment, while the SmallCaps category is below 10k crore market cap.