In May, mutual funds in India purchased stocks worth Rs 477 billion in the secondary market. This is a common practice for mutual funds as they continuously adjust their portfolios to maximize returns. According to the Mutual Fund Insights report by Nuvama Alternative & Quantitative Research, here are the large, mid, and smallcap stocks that mutual funds bought and sold in May.
In the largecap space, mutual funds added stocks such as HDFC Bank, Kotak Mahindra Bank, Infosys, Hindustan Unilever, and State Bank of India. On the other hand, they reduced their stake in companies like Bajaj Finance, Hindustan Aeronautics, Punjab National Bank, Bharat Electronics, and ICICI Bank. The top holdings in the largecap category included HDFC Bank, ICICI Bank, Reliance Industries, Larsen & Toubro, and Axis Bank.
For three consecutive months, mutual funds consistently added stocks like Reliance Industries, HDFC Bank, Infosys, Hindustan Unilever, and Maruti Suzuki. Meanwhile, they reduced their holdings in companies like Bajaj Finance, Hindustan Aeronautics, Jio Financial Services, ABB, and LTIMindtree.
In the midcap space, mutual funds added Patanjali Foods to their portfolios and saw top additions in companies like Suzlon Energy, Oracle Financial Services, Star Health Insurance, Persistent System, and Vodafone Idea. The top reductions were seen in Thermax, Coforge, Solar Industries, Sundaram Finance, and Indus Towers. Some of the top midcap holdings included Cummins India, Bharat Forge, Indian Hotels, Persistent System, and Federal Bank.
In the smallcap segment, mutual funds welcomed new entries like Go Digit GI (IPO), Aadhar Housing Finance (IPO), Indiabulls Real Estate, TBO Tek (IPO), and Indegene (IPO). However, they completely exited from stocks like Share India Securities, GMR Urban, Kopran, Pitti Engineering, and Ujjivan Financial Services. Notable additions in the smallcap space were Go Digit GI, Aptus Value Housing, HUDCO, Prudent Corporation, and Aadhar Housing Finance. Mutual funds also reduced their stake in companies like Hindustan Copper, Whirlpool India, Bharat Dynamics, BEML, and Carborundum Universal.
Overall, mutual funds seem to be actively adjusting their portfolios across different market segments to optimize returns. It will be interesting to see how these changes impact their performance in the coming months.