Through mutual fund lens, Adani group stocks are in line of sight

Exposure remains less than 3% in most companies

Mutual funds (MFs) are starting to warm up to Adani Group stocks as uncertainties fade to some extent. Select stocks from the group have featured in the top 10 most-bought large-cap stocks by MFs in the past two months (June and July), according to data shared by ICICI Securities.

In June, extensive buying was seen in Adani Green, Adani Transmission, and Adani Enterprises (AEL). The buying in AEL continued in July, along with Adani Ports and Special Economic Zone (APSEZ). As a result, the number of AEL stocks held by MFs surged by 32 per cent in the past two months.

The MF exposure to Adani Group shares has risen in the last quarter, but it still remains very low. At the end of June 2023, MFs owned just 1.18 per cent of AEL, slightly higher than the 0.87 per cent holding in March 2023.

In APSEZ, the shareholding came down from 3 per cent to 2.7 per cent during the period.

Except for cement companies — Ambuja and ACC — MFs’ exposure to other firms was less than 1 per cent at the end of June.

The MF exposure data includes holdings of both active and passive funds.

Except for Quant MF offerings, active MF schemes had almost no allocation to Adani shares even before the Hindenburg crisis engulfed the conglomerate at the end of January 2023. After the crisis, even Quant MF schemes sold off their holdings.