Market correction prompts MFs to cut exposure to banks, invest in pharma

Fund managers say reduced exposure to banking can be attributed to a combination of factors

The sharp correction in markets has prompted equity fund managers to realign portfolios, build positions in under-owned sectors, such as pharma, and cut exposure to banking, where large funds have been deployed by fund managers.  

The data sourced from the Securities and Exchange Board of India shows that the share of banking sector as a percentage of total equity assets stood at 21.26 per cent in March — slipping 312 basis points (bps) from the previous month. Meanwhile, the share of the pharma sector has gone up by 133 bps to 6.58 per cent.

Fund managers say the reduced exposure to banking