Mutual funds go on a shopping spree in June as market hits new highs

After remaining largely inactive in May, equity fund managers pumped in Rs 6,437 crore into domestic stocks

Domestic mutual funds (MFs) turned aggressive buyers in June even as the markets hit new highs. After sitting on the sidelines in May, equity fund managers pumped in Rs 6,437 crore into domestic stocks. Auto component manufacturer Sona BLW topped the buy list with an investment of Rs 2,469 crore, mainly in its maiden offering. The stock currently trades nearly 40 per cent above its IPO price. TVS Motors, ITC, HDFC Bank, Reliance Industries and ICICI Bank saw net MF buying of more than Rs 1,000 crore each, shows analysis done by Edelweiss

On the other hand, Infosys topped the sell list. Equity schemes cut exposure to the tune of Rs 3,081 crore in the stock. It is worth nothing that the IT major’s open market buyback is currently active. Fund managers cut exposure in some public sector companies such as ONGC, NTPC and HPCL.

Besides, the trimmed exposure in Larsen and Toubro, Asian Paints and Titan.

Equity funds have continued to witness net inflows for the four consecutive months. However, net inflows in June were lower by around 41 per cent in June compared to May.  Most of the fund houses were overweight on sectors such as auto, capital goods and chemical and fertilisers stocks among others.