By December, mutual funds were once again net sellers of domestic securities. In the last month of the previous decade, open-ended equity oriented mutual funds saw net outflows of Rs 10,000 crore with maximum outflows from Largecap funds. Data from the IFMF showed that all equity-focused regimes, except dividend funds and sector / thematic funds, had net outflows. However, despite being net sellers of stocks, mutual funds have been tweaking their portfolios ahead of the new year and a new decade, even as domestic markets have hit all-time highs with expensive valuations.
HDFC mutual fund
In December, Sun Pharma was the biggest addition HDFC Mutual Fund made to its portfolio, buying shares worth Rs 320 crore. IRCTC was the other major addition with the purchase of shares worth Rs 239 crore. Mahindra & Mahindra was the third largest addition, followed by ABB and Lupine. Among the smaller stocks by HDFC Mutual Fund were Infosys and Vedanta. Infosys shares valued at Rs 825 crore were sold while Vedanta shares valued at Rs 676 crore were sold. Tata Steel, Bharti Airtel and ICICI Bank were the other major cuts.
ICICI Prudential Mutual Fund
Mutual fund houses reduced their stakes in the banking industry, but ICICI Prudential in December traded against the grain. Major additions made by the fund house included Federal Bank and Axis Bank, worth nearly Rs 200 crore each. IT Major HCL Technologies was another of the most significant additions made by ICICI Prudential, followed by Max Financial and Eicher Motors. Vedanta was the biggest cut, selling Rs 748 crore of shares. This was followed by Bharti Airtel, NTPC, Reliance Industries and ITC.
Axis mutual fund
India’s largest mortgage lender, HDFC was the main addition for the fund house, purchasing Rs 545 crore of shares. The two other major additions were Radhakishan Damani’s Avenue Supermarts and the newly listed Gland Pharma. Major stock additions were also OEM Motherson Sumi and IT major TCS. At the other end of the spectrum, Bajaj Finance, HUL, and Asian Paints were the top three stocks Axis Mutual Fund sold.
SBI Mutual Fund
Right before the profits, SBI Mutual Fund bought Infosys shares worth Rs 495 crore. This was followed by the pharmaceutical company Dr Reddy’s Labs. Maruti Suzuki and Reliance Industries of Mukesh Ambani were the other main additions made by SBI Mutual Fund in December. Among its biggest cuts were Bandhan Bank and Kotak Mahindra Bank, selling shares worth over Rs 600 crore each. In addition, the fund house reduced its stake in Tata Steel and JK Cements.