Domestic mutual funds (MFs) scooped up bluechip stocks in December, taking advantage of price corrections seen in them, market daily Business Standard reported.
The benchmark Nifty50 declined 3.5 percent last month and four out of five top buys by equity MFs underperformed the benchmark. Domestic fund managers deployed ₹2,410 crore, the highest, in HDFC, followed by nearly ₹1,900 crore investment in Reliance Industries, which had dropped close to 7 percent last month, informed the report.
Meanwhile, Maruti Suzuki and Kotak Mahindra Bank — which declined more than 6 percent each — were also among the top five buys, noted BS. Fund managers bought shares worth ₹1,670 of Maruti in December, whereas this figure for Kotak was ₹1,480 crore. HUL was also among the top 5 MF buys in December with MFs lapping up shares worth ₹950 crore of the FMCG major, said BS.
Further, Axis Bank emerged as the top-selling share, with equity MFs pumping out ₹1,330 crore from the stock, which rose nearly 4 percent during the month, the report pointed out. In November, the government had sold its residual 1.55 percent stake in the private sector lender, which, analysts said, removed a key overhang on the stock.
Money managers dumped shares in the information technology and pharmaceutical space even as they saw a meaningful correction. HCL Technologies, Dr Reddy's Lab and Tech Mahindra were among the top sells in December, it added.
Among the top 5 sells, apart from Axis Bank, mutual funds sold shares of HCL Tech worth ₹830 crore, ICICI Bank worth ₹570 crore, Dr Reddy's worth ₹550 crore and Tech Mahindra worth ₹440 crore, stated the report.
The last month of the calendar year 2022 saw a massive 223 percent jump in inflow to equity mutual fund schemes vis-à-vis the preceding month. A total of 380 equity mutual fund schemes saw a total inflow of ₹7,303 crore in the month of December, whereas the corresponding data in November was ₹2,258 crore, shows the data released by the Association of Mutual Funds in India (AMFI).