 "Equity market")
January 2024 saw foreign institutional investors ( FII) outflows of at least $3.1 billion, the highest in the last 11 months wihle domestic institutional investors recorded the sixth consecutive month of inflows at $3.2 billion, shows data analysed by brokerage Motilal Oswal.
Total assets under management (AUM) of the MF industry scaled new highs to reach Rs 52.7 trillion in January 2024 (+3.9 per cent month-on-month), primarily fueled by a monthly increase in AUM for equities, liquid, income, balanced, and arbitrage funds.
"Equity AUM for domestic MFs (including ELSS and index funds) increased 3.2 per cent month-on-month to Rs 24.6 trillion in January 2024, led by the slower pace of redemptions to Rs 321 billion (down 17.4% MoM) as the market indices (Nifty closed flat MoM) and also the sales of equity schemes were marginally up by 0.5% MoM to Rs 568 billion," said Motilal Oswal in a note.
In January 2024, divergent interests were seen within sectors. The top 10 stocks that saw the maximum MoM increase in value were Reliance Industries, Bharti Airtel, Infosys, Sun Pharma, ONGC, HCL Tech, Coal India, Power Grid Corp., Maruti Suzuki, and PFC. Stocks that witnessed the maximum MoM decline in value were HDFC Bank, Zee Entertainment, HUL, Bajaj Finance, M&M, LTIMindtree, ITC, Cholamandalam Investment & Finance, Axis Bank, and Avenue Supermarts.
 "avenuesld")
Key facts
January 2024 saw notable changes in the sector and stock allocation of funds. On a month-on-month basis, the weights of Oil & Gas, Healthcare, PSU Banks, Telecom, Technology, Automobiles, and Real Estate increased, while that of Private Banks, Consumer, Metals, Retail, Chemicals, Textiles, and Media moderated.
More From This Section
Oil & Gas’ weight jumped to an eight-month high of 6.4% (+60bp MoM and +10bp YoY) in January 2024.
Healthcare’s weight, after remaining range bound in the past six months, jumped to a 29-month high of 7.3% in Jan’24 (+40bp MoM, +100bp YoY). Private Banks’ weight moderated for the seventh consecutive month to 17.1% (-110bp MoM, -160bp YoY) in January 2024.
Consumer’s weight declined for the second consecutive month to 6.1% (-40bp MoM, -70bp YoY) in Jan’24 – the lowest since October 2017.
In terms of value change MoM, divergent interests were visible within sectors: The top 5 stocks that saw a maximum increase in value were Reliance Industries, Bharti Airtel, Infosys, Sun Pharma, and ONGC
Among the Top 10 funds, the maximum MoM increase was seen in Nippon India Mutual Fund (+4.8%) followed by ICICI Prudential Mutual Fund (+4.5%), HDFC Mutual Fund (+4.4%), Aditya Birla Sun Life Mutual Fund (+2.7%), Kotak Mahindra Mutual Fund (+2.3%).
The top sectors where MF ownership vis-à-vis the BSE 200 is at least 1% higher: Healthcare (15 funds over-owned), Capital Goods (14 funds overowned), Automobiles (10 funds over-owned), NBFCs (10 funds over-owned), and Chemicals (10 funds over-owned)
The top sectors where MF ownership vis-à-vis the BSE 200 is at least 1% lower: Oil & Gas (19 funds under-owned), Consumer (19 funds underowned), Private Banks (14 funds under-owned), Technology (14 funds under-owned), and Utilities (14 funds under-owned).
Nifty50: The highest MoM net buying in January 2024 was observed in Asian Paints (+11.9%), Eicher Motors (+6.9%), Maruti (+6.7%), Kotak Mah. Bank (+6.7%), and HDFC Bank (+6.7%).
Nifty Midcap-100 snapshot: MFs net buyers in 54% of the stocks.The highest MoM net buying in January 2024 was seen in One 97 Communications, BOI, Tata Communications, Jubilant Foodworks, and Indus Towers.
Nifty Smallcap-100 snapshot: MFs net buyers in 57% of the stocks.The highest MoM net buying in January 2024 was witnessed in BSE, Suzlon Energy, Latent View Analytics, MRPL, and Cochin Shipyard.
