MFs dumped SBI, Infy, ICICI Bank, many midcaps in Oct

Fund managers heavily bought into Axis Bank, HDFC and HDFC Bank during the month

Domestic mutual fund houses heavily bought into Axis Bank, HDFC and HDFC Bank even as the domestic equity market traded its peak levels, leading to some profit booking on select counters, says a Morningstar portfolio analysis.

Mutual funds’ total holding went up by 17.7 per cent in Axis Bank, 9.5 per cent in HDFC and 2.8 per cent in HDFC Bank.

Axis Bank missed Street estimate on September quarter profit and reported higher gross non-performing assets (NPAs) at Rs 27,402.32 crore compared with Rs 22,030.87 crore reported for the June quarter.

Amfi data shows mutual funds witnessed some Rs 51,000 inflow during the month after investors pulled out more than Rs 16,000 crore in the preceding month. Amfi data shows the total infusion in MF schemes reached to over Rs 2.5 lakh crore in the first seven months (April to October) of this financial year.

Besides the three financials stocks, domestic fund managers bought into SBI Life Insurance weeks after it got listed on the bourses.

Among others, they also bought into other largecap stocks such as Bharti Airtel, GAIL India, ITC, Tata Motors, Yes Bank and Sun Pharma.

Meanwhile, they downloaded shares of SBI, Infosys, Coal India, ICICI Bank, Petronet LNG, Vedanta, Bharat Petroleum, Hindalco, Adani Ports & SEZ and IndusInd Bank.

In SBI, mutual fund holding came down by nearly 5 per cent, while in Coal India, it fell by 17 per cent.

At the end of October, domestic mutual funds had their biggest holding in HDFC Bank at 5.54 per cent worth Rs 43,660 crore; followed by ICICI Bank at 4.29 per cent or Rs 31,976 crore and SBI at 3.49 per cent or Rs 24,861 crore.

Among midcap and smallcap stocks, mutual funds dumped Karur Vysya Bank, Rain Industries, IFB Industries, Birla Corp, NIIT Tech, Gujarat Narmada Valley Fertilisers, CARE Ratings, Sadbhav Engineering, IDFC and Bata India.

At the same time, they raised their holdings in Apollo Tyres, Bharat Financial, NLC India, Tata Chemicals, Cyient, PI Industries, Nalco, Indian Hotels, Dewan Housing and Oberoi Realty, the Morningstar study showed.

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