Amid commodity boom, equity funds increase allocation for metals in July

Top ten metal stocks bought by the equity funds in July included Tata Steel and Hindalco Industries

In the last few months metal stocks have been in demand due to the positive earnings announcements and improved business outlook for the sector. Equity funds have started to ride on the popularity of the metal sector and are investing aggressively into the metal stocks.

The data from Motilal Oswal Fund folio shows that metals’ weight achieved a 33-month high after moderating in the last two months to 3.4 per cent in July. In the current calendar year, average weight in the metal sector was around 2.8 per cent. Top ten metal stocks bought by the equity funds in July