Top 10 Stocks Which Saw Most Mutual Fund Buying in February
Mutual funds actively raised their holdings in various stocks in February, with major emphasis on banking stocks, according to the report. Top lenders like HDFC Bank, Kotak Mahindra Bank, Axis Bank, and ICICI Bank were among the favourites of fund houses. Here is a close examination of the ten stocks that attracted the most mutual fund investments in the last month.
HDFC Bank
India’s biggest private lender was the most preferred mutual fund investment choice. In February, fund houses picked up Rs. 6,000 crore worth of shares. Mutual funds together owned 23.93% of the bank as of the December quarter. The stock has fallen by 9% from its high despite this.
Hexaware Technologies
The latest entrant to Dalal Street also saw robust buying interest from mutual funds. Fund houses put in Rs. 4,200 crore in Hexaware Technologies shares in and after its listing.
Tata Consultancy Services (TCS)
During a sharp sell-off in IT shares, mutual funds took advantage of the fall by buying shares of India’s largest IT services company. Investments in TCS totaled Rs. 3,900 crore in February. Fund houses as of the December quarter owned a 4.3% stake in the firm. The stock, however, is still 24% lower than its high.
UltraTech Cement
The nation’s biggest cement maker attracted the interest of mutual funds, especially after its recent foray into the wires and cables business, which resulted in a steep fall in shares such as Polycab and Havells. Mutual funds bought Rs. 2,400 crore worth of UltraTech Cement shares in February, taking their combined holding to 12.26% as of the December quarter. The stock has fallen 13% from its peak.
Kotak Mahindra Bank
Mutual funds also demonstrated keen interest in Kotak Mahindra Bank, buying shares of Rs. 2,300 crore in February. The stock is now trading close to its 52-week high, with fund houses having a 17.44% stake.
Axis Bank
Mutual funds bought shares of Rs. 1,900 crore of Axis Bank in February. Fund houses collectively had a 29% stake in the lender as of the December quarter.
Power Grid Corporation of India
The government-owned power industry company viewed purchases as mutual funds capitalized on a 25% fall in its share price from the high. Investments in Power Grid totalled Rs. 1,800 crore in February, with mutual funds possessing a 12.1% stake in the firm.
Larsen and Toubro
The infra behemoth drew Rs. 1,700 crore of investments from local mutual funds in February. The stock has fallen 20% from its high point, and fund houses now own a 19.68% stake in the company.
ICICI Bank
India’s second-largest private bank also witnessed high mutual fund purchases, with buys totalling Rs. 1,700 crore in February. The stock is now less than Rs. 100 short of retesting its earlier highs, with fund houses owning a 29.5% stake.
Varun Beverages
Even after correcting by more than 30% from its new high, Varun Beverages continued to be the mutual fund houses’ favourite. Mutual fund houses poured in Rs. 1,600 crore into one of the biggest bottling partners of PepsiCo in the world.
Conclusion
The trend of investments in February reflects mutual funds’ bias towards banking stocks as well as leveraging the downturns in sectors such as IT, infrastructure, and power.
