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Mutual funds increased their investments in Private Banks, Metals, Utilities, Telecom, Consumer Durables, and Real Estate in April 2024, shows data analysed by brokerage Motilal Oswal.
Private Banks (17.2% holding) - This was the biggest sector holding for MFs in April, suggesting strong belief in their growth potential. This was followed by Automobiles (8.3%), Technology (8%), Capital Goods (7.9%), and
Healthcare (7.1%).
Metals, Utilities, Telecom, Consumer Durables, and Real Estate also saw a rise in their weights within Mutual Fund portfolios. Conversely, technology, healthcare, oil & gas, consumer, retail, cement, insurance, and textiles were sectors where mutual funds reduced their investments compared to the previous month.
The top sectors where MF ownership vis-à-vis the BSE 200 is at least 1% lower: Consumer (20 funds under-owned), Oil & Gas (18 funds underowned), Private Banks (14 funds under-owned), Technology (13 funds under-owned), and Utilities (13 funds under-owned).
The top sectors where MF ownership vis-à-vis the BSE 200 is at least 1% higher: Healthcare (17 funds over-owned), Capital Goods (15 funds overowned), NBFCs (10 funds over-owned), Chemicals (10 funds over-owned), and Consumer Durables (10 funds over-owned).
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Among the Nifty 50 stocks, the highest month-on-month net buying in April 24 was observed in Kotak Mahindra Bank (+19.5%), HDFC Life Insurance (+12.8%), HUL (+7.8%), Adani Ports (+6%), and Hindalco (+5.5%).
Mutual funds were net buyers in 55 per cent of Nifty Midcap 100. The highest MoM net buying in April 2024 was seen in Vodafone Idea, Mazagon Dock, Tata Technologies, JSW Energy, and Suzlon Energy.
Mutual funds were net buyers in 69 per cent of Nifty Smallcap 100 index. The highest month-on-month net buying was witnessed in Angel One, HUDCO, Mahanagar Gas, Amara Raja Energy, and City Union Bank.
Banking stocks dominated the top gainers, with five out of the ten biggest value-increasing companies belonging to the sector. Leaders included HDFC Bank, Axis Bank, ICICI Bank, and SBI, indicating a surge in investor confidence towards the banking industry.
Bharti Airtel (telecom), NTPC (power), and Kotak Mahindra Bank (banking) rounded out the top performers, demonstrating a diverse range of sectors experiencing positive growth.
However, the report also highlights a decline in some previously strong performers. IT giants like L&T, HCL Technologies, Infosys, and TCS faced a drop in value, along with Bajaj Finance (financial services), Sun Pharma (pharmaceuticals), and Titan Company (luxury goods).
Among the top 25 schemes by assets under management, the following reported the highest monthly increase: Nippon India Small Cap Fund (+9.2% MoM change in NAV), SBI Small Cap Fund (+8% MoM), Nippon India Multi Cap Fund (+7.7% MoM), Kotak Emerging Equity Fund (+7.3% MoM), and HDFC Small Cap Fund (+7.1% MoM).
The Indian stock market closed April 2024 on a high note, extending its winning streak to three consecutive months. The Nifty 50 index climbed 1.2% to settle at 22,605, despite experiencing significant volatility throughout the month with swings exceeding 1,000 points.
Domestic investors drive growth
Domestic investors (DIIs) continued their buying spree, recording their ninth consecutive month of inflows in April. They pumped in a hefty $5.3 billion, showcasing strong confidence in the Indian market. Conversely, foreign investors (FIIs) turned net sellers, pulling out $1.1 billion.
Mutual Funds See Record Inflows:
Retail investors continued to embrace mutual funds, with Systematic Investment Plans (SIPs) reaching a new peak of Rs 203.7 billion in April. This represents a 5.7% increase month-on-month (MoM) and a significant 48.4% jump year-on-year (YoY). Equity Assets Under Management (AUM) for domestic mutual funds also witnessed a healthy rise of 5.3% MoM to INR 27 trillion. This growth was fueled by a combination of rising market indices and increased sales of equity schemes.
Banking and Metals Shine:
Private Banks emerged as the clear favorite, with their weight in mutual fund portfolios rising for the second consecutive month to 17.2% in April. Metals also enjoyed a surge, reaching a 31-month high of 2.7% weight. On the other hand, Technology dipped to a 50-month low of 8% weight after two consecutive months of decline.
