Mutual funds turn net buyers for 11th straight quarter

Mutual funds pumped in a net of Rs 151,927 crore in 33 months between April 2014 and December 2016.

Mutual funds turned net buyers for a record 11th straight quarter in December, investing more than Rs 150,000 crore in equities in past 33 months.

Domestic mutual funds have made a highest quarterly inflow of Rs 31,959 crore in equities during October-December, 2016 quarter amid weakness in the stock markets post demonetisation.

With this, the mutual funds were net buyers in equities for the 11th straight quarter since June 2014, following the victory of the Narendra Modi-led National Democratic Alliance in the general election held in May 2014.

According to the data released by Securities and Exchange Board of India (Sebi), mutual funds have pumped in a net of Rs 151,927 crore in 33 months between April 2014 and December 2016.

Quarter	Mutual funds
ended	Net inflow (Rs cr)
Jun-14	659
Sep-14	16,380
Dec-14	14,654
Mar-15	9,129
Jun-15	23,746
Sep-15	25,296
Dec-15	14,028
Mar-16	3,075
Jun-16	6,487
Sep-16	6,525
Dec-16	31,948
Source: Sebi
Data compiled by BS Research

 

In past two-and-half years, total market share of mutual funds in equities increased by one percentage points. Currently, mutual funds account 4.59% of total market capitalization of BSE against 3.45% at the end of March 2014. The calculation is based on the shareholding pattern filed by the companies with the stock exchanges on quarterly basis. The shareholding data for December 2016 quarter is yet to be filed.

An analysis of stocks performance of 332 companies from the BSE500 and smallcap index in which mutual funds increased their holdings more than one percentage points during this period reveals that 274 stocks outperformed the market by recording higher returns as compared to 19% returns reported by the S&P BSE Sensex. The S&P BSE Smallcap index zoomed 75%, while S&P BSE500 index was up 34% during the same period.

The market price of 185 companies has been more than doubled. In 54 companies mutual funds held nil holdings at the end of March 2014 quarter, according to data compiled by the Business Standard Research Bureau.

	Mutual funds stake (in %)			Price on BSE (in Rs)			Net profit/loss (Rs cr)
Company	Mar-14	Sep-16	Chg	31/03/2014	05/01/2017	% chg	FY14	FY16
Astra Microwave	4.49	31.98	27.5	50.80	114.15	125	51.02	56.24
ITD Cem	0.79	24.76	24.0	14.23	166.60	1071	9.19	53.86
Indian Terrain	-	21.98	22.0	30.50	149.00	389	9.79	29.74
MCX	0.05	20.53	20.5	490.10	1272.00	160	121.86	51.96
KEI Industries	-	18.43	18.4	12.46	125.80	910	11.71	62.19
KNR Construct.	8.03	26.41	18.4	17.79	169.35	852	59.01	124.47
Sanghvi Movers	2.83	19.55	16.7	68.95	214.25	211	-14.49	115.93
Mold-Tek Pack.	-	15.20	15.2	20.00	199.65	898	9.77	24.22
Techno Elecric	1.31	16.42	15.1	55.73	320.00	474	86.25	98.98
APL Apollo	2.46	17.29	14.8	198.15	937.80	373	59.15	116.71
Performance of companies in mutual funds increased their stake between April 2014 and Sep 2016
Source : CapitalinePlus