MF trends in June: Top stocks that witnessed biggest inflows and outflows

Here are the stocks where biggest liquidity has got deployed in June 2024

Equity markets witnessed a shift in investor preference in June 2024, with large-cap schemes continuing to dominate buying activity while mid-cap funds saw a significant increase in deployment, according to Elara Securities.
 

Large-Cap Frenzy:

Large-cap mutual funds were major buyers in June, accumulating shares in leading blue-chip companies.
HDFC Bank topped the buying chart with inflows of Rs 1,167 crore, followed by Tata Consultancy Services (Rs 675 crore) and Infosys (Rs 525 crore). Investors also picked defensive plays like Indus Towers (Rs 501 crore) and Dr. Reddy's Laboratories (Rs 459 crore).

On the flip side, large-cap funds offloaded shares in some auto and capital goods companies. Tata Motors witnessed the highest selling pressure (Rs 399 crore), followed by Hero MotoCorp (Rs 315 crore) and Kotak Mahindra Bank (Rs 314 crore).

Mid-Cap Mania:

Mid-cap schemes emerged as a bright spot in June, exhibiting a surge in buying activity. IT major Mphasis Ltd. attracted the highest inflows (Rs 1,508 crore), followed by banking giant HDFC Bank (Rs 1,023 crore) and telecom infrastructure provider Indus Towers (Rs 898 crore).  Investors also showed interest in pharmaceutical companies like Gland Pharma (Rs 510 crore).

However, profit booking was observed in some mid-cap stocks. Bharat Electronics led the selling chart for mid-cap funds with outflows of Rs 685 crore, followed by engineering company Cummins India (Rs 553 crore) and home appliance manufacturer Whirlpool of India (Rs 459 crore).

Here are some trends in small-cap and multi/flexi-cap mutual fund activity during June 2024

Small-Cap Schemes: 

Increased Buying: Small-cap funds displayed a clear buying preference in June. They accumulated shares in various sectors, including:

• Banking & Finance: HDFC Bank (Rs 1,171 crore), MAS Financial Services (Rs 200 crore), ICICI Lombard (Rs 179 crore).
• Power & Utilities: Adani Power (Rs 334 crore), HUDCO (Rs 136 crore).
• Consumer Durables: Sharda Motor Industries (Rs 214 crore), Stanley Lifestyles (Rs 172 crore).
• Pharma & Chemicals: Sudarshan Chemical (Rs 203 crore), Asian Paints (Rs 146 crore).

Profit Booking: While buying activity was strong, some profit-taking also occurred:

• Travel & Tourism: Interglobe Aviation (Rs 337 crore).
• Healthcare: Narayana Hrudayalaya (Rs 229 crore).
• Engineering: Titagarh Wagons (Rs 169 crore).
• Others: Amara Raja Batteries (Rs 193 crore), Heritage Foods (Rs 182 crore).

Multi/Flexi-Cap Schemes:

Broad-Based Buying: Multi/flexi-cap funds, which can invest across market capitalizations, exhibited significant buying activity. Top buys included:

• Banking & Finance: HDFC Bank (Rs 3,529 crore), Kotak Mahindra Bank (Rs 438 crore), Axis Bank (Rs 294 crore).
• Auto & Auto Ancillaries: Eicher Motors (Rs 811 crore), ZF Commercial Vehicle (Rs 464 crore), Maruti Suzuki (Rs 285 crore).
• IT & Services: Mphasis (Rs 408 crore), Infosys (Rs 363 crore), Persistent Systems (Rs 237 crore).
• Others: Reliance Industries (Rs 390 crore), Samvardhana Motherson (Rs 283 crore), JSW Steel (Rs 238 crore).

Selling Activity: Some profit-taking was also observed in multi/flexi-cap funds:

• Public Sector Banks & Companies: State Bank of India (Rs 667 crore), Tata Motors (Rs 466 crore), Bharat Heavy Electricals (Rs 290 crore), ONGC (Rs 268 crore), Indian Bank (Rs 160 crore).
• Real Estate: Prestige Estates (Rs 274 crore).
• Others: Apollo Hospitals (Rs 303 crore), Hindalco Industries (Rs 296 crore), Power Finance Corporation (Rs 237 crore).