scorecardresearchFund managers bought shares of Banks, Autos and IT in May: Report

Fund managers bought shares of Banks, Autos and IT in May: Report

Updated: 13 Jun 2022, 11:02 AM IST
TL;DR.

Fund managers also bought underperforming auto stocks like Maruti, Eicher Motors, and Mahindra & Mahindra, where growth has been muted due to chip shortages and demand revival has been relatively subdued.

Fund managers used the lower price levels to buy stocks such as Infosys, TCS, and Tech Mahindra.

Fund managers used the lower price levels to buy stocks such as Infosys, TCS, and Tech Mahindra.

Large mutual funds bought shares of lenders, automobile makers, and select IT companies in May as they stuck to beaten-down stocks amid uncertainty over the near-term market outlook, Economic Times reported.

In May, the Nifty declined 3%, partly led by sell-offs in IT stocks that are on average down 20-25% from their highs.

The Nifty IT index dropped 6 per cent in May. The main reason behind the fall was that FPIs sold stocks worth over 16,000 crore from the sector amid a volatile rupee, according to data released by NSDL.

Foreign investors have been bearish on Indian markets for a multitude of reasons, including inflation and a weakening rupee.

Meanwhile, the US market accounts for 40-78 per cent of Indian IT firms' revenues, with the big five – Tata Consultancy Services, Infosys, Wipro, HCL Technologies, and Tech Mahindra – accounting for more than half.

 Top AMC's Fund Movement in MayBuy
SBIDivi's Laboratories
KPR mill
HDFC Bank
 ICICIInfosys
Bharti Airtel
TCS
HDFCInfosys
TCS
HDFC
Nippon IndiaBajaj Finance
Tech Mahindra
HDFC Bank
 AxisM&M
Maruti Suzuki
HDFC Bank
KotakWhirlpool of India
Bharat Forge
Hindalco Industries
Aditya BirlaInfosys
Reliance Industries
HDFC Bank
 Tata Asset ManagementInfosys
Tech Mahindra
TCS
 Source: Economic Times 

Almost 6 stocks in the Nifty IT pack are trading 30-40% down from their 52-week highs.

Some fund managers used the lower price levels to buy stocks such as Infosys, TCS, and Tech Mahindra.

Fund managers also bought underperforming auto stocks like Maruti, Eicher Motors, and Mahindra & Mahindra, where growth has been muted due to chip shortages and demand revival has been relatively subdued.

Large banks have also seen buying on cheaper valuations. Some fund managers also bought into select companies that have gained market share, like InterGlobe Aviation and Inox Leisure, which are seen among the top beneficiaries of the re-opening trades.

Meanwhile, FPI's sold 12,000 worth of shares in the financial services sector in May.

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First Published: 13 Jun 2022, 11:02 AM IST