For the first time in four years, the Mutual Fund industry saw outflows from equity funds when investors pulled Rs 2,480 crore out. Analysts claim that the investors have booked profits as the stock market has recouped a bulk of the losses incurred in March. Among these trends, some of India’s largest asset management companies either sold some of their top holdings or preferred the status quo. Interestingly, nearly all the top companies in mutual funds reduced their holdings of Reliance Industries Ltd in Mukesh Ambani after it hit record highs, according to ICICI Direct results.
The top investment from SBI Mutual Fund was PVR Ltd, one of the badly-affected companies during the pandemic. SBI AMC had a PVR share of 0,03 lakh at the end of June, and a market cap of Rs 78 crore at the end of last month. The City Union Bank, Supreme Industries and HDFC Life Insurance were also major stocks that SBI mutual fund purchased in July. RIL is one of the main stocks of the fund house, and in July SBI mutual fund booked profits in RIL reducing its holdings by 4%. Infosys was the only stock to raise its holding by SBI AMC among its biggest bets.
The Yes Bank became the largest purchase for the HDFC mutual fund in July, presumably through the private sector lender’s subsequent public offering. Currently, 1,639 lakh shares of the lender are owned by HDFC AMC. The other top buys of the HDFC Mutual Fund were ACC, Muthoot Finance, Wipro and Tech Mahindra. The house of funders reduced its RIL holding by a huge 23% and sold reduced its HDFC bank holdings by 5%. In July, HDFC AMC acquired Infosys shares. In July, ICICI Prudential tracked pharmaceutical and healthcare patterns. The previous month saw the acquisition of stocks from Metropolis Healthcare, Alkem Laboratories, Divisional Laboratories, and Torrent Pharma.
ICICI Prudential was to sell Axis Bank, including Reliance Industries from its top holdings. The firm was the largest. The fund house did not represent the change by HDFC AMC and SBI, as 9% of its holdings in Infosys were sold, The fund house
Intriguingly enough, in July the Aditya Birla Sunlife Mutual Fund collected HDFC AMC’s stocks and in June it received Rs 70 crore from Rs 1, its holding at fund house. The other highlights of Aditya Birla Sunlife were Motherson Sumi, UPL, PI Industries, and IGL. 15 percent if, during July, the stakes it had in Reliance Industries were sold when purchasing Infosys.
AMCs sold Bharti Infratel, Eicher, DLF, and purchased Piramal Enterprises, UPL, JSW Steel, and even SBI Cards amongst large-cap stocks. Yes Bank was the largest mid-cap share of AMC, as the holding value in the fund assets rose from just Rs 1 in June to Rs 211 crore. Vodafone Idea was the best-selling stock for midcaps.
