Mutual Funds Sold Lead Stocks: IndusInd Bank to Bajaj Finance Among Largest Sell-Offs
Mutual funds cut their holdings in many large-cap, mid-cap, and small-cap stocks by a significant amount in February, according to reports. The information suggests that top fund houses sold shares in the likes of IndusInd Bank, InterGlobe Aviation, Bajaj Finance, and ITC Hotels, among others. Here’s a closer look at some of the major stocks that saw a sell-off during the last month.
IndusInd Bank
A major private sector bank lender led the list of shares shed by mutual funds. Holdings aggregating Rs.1,600 crore were disposed of, cutting the mutual funds’ total holding in the bank. Mutual funds held a 30.31% stake in the bank at the end of the December quarter. The stock has lost 57% since its recent high of Rs.1,576.35.
InterGlobe Aviation
The parent of a top airline also witnessed high selling, with mutual funds disposing of shares amounting to Rs.1,300 crore in February. Mutual fund holding in the company was 14.51% as of the December quarter end. The stock has fallen 7% from its recent high of Rs.5,035.
Bajaj Finance
One other significant financial group was one of the most widely sold stocks, with mutual funds disposing of Rs.1,300 crore worth of shares. Mutual funds at the close of December held 9.52% interest in the firm. The share has fallen 3% below its highest level of Rs.8,739.
ITC Hotels
Mutual funds sold shares of value Rs.900 crore in this hospitality firm. Mutual fund holding was 7.4% at the end of December quarter. The stock has fallen by 6% from its high of Rs.180.
Cholamandalam Investment
A non-banking finance company witnessed mutual funds offloading Rs.800 crore worth of shares in the previous month. According to the figures, mutual funds had a 13.37% holding in the company as of December-end. The stock has declined by 12% from its recent high of Rs.1,652.
Shriram Finance
Mutual funds cut their holdings in this financial services firm, selling Rs.700 crore worth of shares. Mutual funds had a 10.51% holding in the company as of December-end. The stock fell close to 15% from its recent high of Rs.730.45.
Power Finance Corporation
Mutual funds sold shares of Rs.600 crore in this government-sponsored financial company. The mutual fund holding was 11.57% at the end of the month. The stock fell 32% from its high of Rs.580.
Voltas
A top air-conditioning and engineering solutions company observed mutual funds disposing of Rs.600 crore worth of stocks. Mutual funds had a stake of 21.40% in the firm at the end of December. The stock fell by 27% from a high of Rs.1,944.90.
Info Edge (India)
Mutual funds sold shares aggregating Rs.600 crore in this technology and internet services firm. Mutual funds held a 11.15% stake as of the end of the December quarter. The stock has fallen 30% from its high of Rs.9,128.90.
Wipro
A popular IT services firm also saw selling pressure from mutual funds, with Rs.500 crore worth of shares being sold. Mutual funds owned a 4.29% stake in the company at the end of December. The stock has fallen by 18% from its high of Rs.324.60.
Conclusion
The tendency of mutual funds to decrease stakes in these companies reflects a shift in investment strategies, which could be driven by market sentiment and sectoral perceptions.
