Nowadays Equity mutual funds are betting real big on IT (information technology) and banking stocks. Whereas in the month of may, fund managers best pick regarding IT firms were Infosys, HCL Technologies, State Bank of India (SBI) and HDFC Bank. The purchase of HCL tech alone made an amount of Rs 935 crore till the end of the month. Besides this fund houses bought Infosys scrip to the tune of Rs 1,145 crore during the month of may which was the second highest among top large-cap stocks.
The fund managers of equity mutual funds bought HDFC and SBI Bank scrips to the tune of Rs 693 crore and Rs 557 crore, which resulted in increased interest rates in banks. Though HDFC BANK maintained the badge mark of the most-owned scrip by fund houses in value terms the market value of equity mutual fund holdings in HDFC Bank stood at Rs 53,104 crore.
In this so-called race, ICICI Bank stood at the second position in the market and the value of mutual fund holdings in the scrip totaled Rs 27,652 crore which was displayed by Morningstar Investment Adviser through data compilation.
As per the news, the majority of the mutual fund’s total holdings are directed to the four banks which are- HDFC Bank, ICICI Bank, SBI and Kotak Mahindra Bank. And the total value invested in these banks by the fund managers are around Rs 1,22,047 crore. Regarding this, in the month of may the banking stocks saw a huge hike and out of 10 stocks, these 4 stocks registered the highest change in terms of value. SBI recorded the highest increase with 11.9% hike while HDFC Bank recorded highest rates were at 11.1% and Kotak Mahindra and Axis Bank saw a gain increase of around 8%.
In the month of may, there was a big notable change in the sector and stock allocation of funds. While the weight of companies in banking and financial services, IT, consumer and oil and gas sectors increased but those of, healthcare, automobiles, metals, capital goods, infrastructure, cement, utilities, telecom, real estate and chemicals were moderated.
Regarding this increment the IT companies whose weight increased 0.3 per cent m-o-m and by 1.2 per cent year-on-year (y-o-y) to 8 per cent overtook capital goods and the companies whose weight declined 0.4 per cent m-o-m and 1 per cent y-o-y to 7 per cent, to take the fourth position in terms of sector allocation of mutual funds. During this HDFC was the premium choice of the buyers and was the most bought large-cap stock in the month of May.