Equity mutual fund managers 'buy the dip' amid a huge downturn in market

Oil marketing companies BPCL and HPCL saw buying interest amid a slide in oil prices

Domestic money managers lapped up shares of several companies amid a huge downturn in the market last month. Equity mutual funds (MFs) bought shares worth Rs 15,000 crore, even as the benchmark Nifty fell 5.7 per cent in July. 

The correction was steeper in the broader market with the NSE Midcap 100 and the NSE Smallcap 100 indices declining 10 per cent and 11 per cent, respectively. Fund managers were seen lapping up shares in the financials and oil & gas space. 

Meanwhile, they pruned their holdings in stocks in the technology, automobile and metal space. Axis Bank, ICICI Bank and Gail India were among the most-bought stocks, while Infosys, Shriram Transport Finance and UPL were among the most-sold companies, data compiled by Edelweiss shows. 

Oil marketing companies BPCL and HPCL, too, saw buying interest amid a slide in oil prices. Automobile stocks Mahindra & Mahindra and Ashok Leyland and metal stocks Hindalco Industries and SAIL saw selling by MFs amid fears of global slowdown and weak domestic demand.