Top MFs Boost Equity Holdings in July Amid Market Rally
By Market Desk
Leading Indian MFs like SBI, ICICI Prudential, and HDFC increased equity holdings in July, capitalizing on market recovery driven by falling oil prices and strong corporate earnings.
India’s top three asset management companies significantly increased their equity fund values in July, capitalizing on a broader market recovery. SBI Mutual Fund, ICICI Prudential Mutual Fund, and HDFC Mutual Fund recorded equity fund value increases of 2.3%, 3.1%, and 3.5% respectively.
The Indian stock market experienced a notable recovery throughout July. This resurgence was primarily driven by weakening crude oil prices and robust corporate earnings reports.
July Market Overview
- Nifty 50 Index: Gained 2.17%
- Domestic Equity Funds AUM: Increased 2.7% month-on-month
- Total AUM: Reached ₹41.8 trillion
SBI Mutual Fund, managing the largest AUM among the three at ₹9.21 trillion, made strategic adjustments to its portfolio. The fund significantly increased its exposure to specific financial and conglomerate stocks.
SBI Mutual Fund’s Key Moves
- Top Purchases: Bajaj Finance (₹2,634 crore), Adani Enterprises (₹2,386 crore)
- Top Sales: Reliance Industries (₹1,016 crore), ICICI Bank (₹890 crore)
- New Additions: INDO-MIM, GSPL Transmission
- Complete Exit: Restaurant Brands
ICICI Prudential Mutual Fund, with an AUM of ₹7.43 trillion, showed a clear preference for banking sector stocks. Conversely, the fund reduced its positions in several prominent IT companies during the month.
ICICI Prudential’s Portfolio Shifts
- Top Purchases: Kotak Mahindra Bank (₹2,100 crore), SBI (₹1,400 crore)
- Top Sales: Infosys (₹3,200 crore), TCS (₹1,800 crore), HCL Technologies (₹11 crore), Sun Pharma (₹2,000 crore)
- New Entrants: Biocon, SBI Funds Management, GSPL India Transco
- Complete Exit: Procter & Gamble Health
HDFC Mutual Fund, the third-largest with an AUM of ₹6.27 trillion, also focused on key infrastructure and energy players. The fund’s selling activity included both auto and energy giants.
HDFC Mutual Fund’s Investment Rejig
- Top Purchases: Adani Enterprises (₹800 crore), Adani Green Energy (₹500 crore), Sun Pharma (₹900 crore)
- Top Sales: Bajaj Auto (₹1,300 crore), Reliance Industries (₹500 crore)
- New Entrant: Diamond Power Infra
- Complete Exit: Nilkamal Ltd
These portfolio adjustments by India’s major mutual funds reflect responses to the recovering market conditions in July. Their strategic buying and selling activities highlight targeted sector and stock preferences during this period.