Mutual funds were net buyers in Indian equities in May, adding stocks worth Rs 2,447 crore as compared to selling Rs 4,533 crore in shares in April.
In the smallcap space, some of the major additions to the portfolios during the month include Jupiter Wagons, Nexus Select Trust Mall, Carysil, Chennai Petroleum Corp and Faze three, according to IDBI Capital.
While Jupiter Wagons and Faze Three have gained over 30% this year, Chennai Petroleum Corp soared nearly 74% on a year-to-date basis.
Meanwhile, Nexus Select Trust is the latest entrant to the markets following its Rs 3,200 crore REIT IPO. Nexus is India’s first REIT with rent-yielding retail real estate assets.
Apart from the buying, domestic fund houses have also exited positions in some smallcap stocks, including Punjab Chemical and Crop, Kolte-Patil Dev, Dollar Industries, Sirca Paints, PTC India Fin Serv and V2 Retail.
Sector-wise, the fund houses upped stakes in auto, banking, capital goods, FMCG, while reducing in infrastructure, metals, and power sectors.
Individually, Axis Mutual Fund has added Indian Bank, CSB Bank, Alembic Pharma, BHEL and Apollo Tyres as its top picks in the month, while moving out of Gland Pharma, Paytm, DCB Bank, 360 One Wam, Tata Chemicals among others. Largecap superstars, including Bajaj Finance, ICICI Bank, HDFC Bank, were among the fund’s top holdings in the month.For PGIM India Mutual Fund, Blue Star, Neogen Chemicals, Happiest Minds, RBL Bank, Landmark Cars were among top additions. M&M Financial, Gland Pharma, Dollar Industries and others saw cuts from the fund.
On the retail side, flows into equity mutual funds in May halved from the previous month to Rs 3,240 crore, the lowest in the last six months, as investors booked profits taking advantage of the rally in equities.
Due to a rise in markets and flows into debt schemes, assets under management (AUM) of the industry touched Rs 42.94 lakh crore.
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