From Axis to ICICI: Mutual funds lap up private bank stocks ahead of rally

Domestic money managers aggressively bought shares of private sector banks in February. Kotak Mahindra Bank and Axis Bank were the two most-bought stocks by domestic mutual funds (MFs) last month, according to an analysis of monthly scheme disclosure data. The buying came at an opportune time as shares of most banks have rebounded sharply from their February lows. Reliance Industries was the third-most bought stock. 

Shares of the company made fresh lifetime highs on Wednesday. MFs also bought shares of Emami, where the promoter divested their holding to reduce the share pledge burden. Meanwhile, Tech Mahindra, Adani Ports and UPL were the most-sold shares in February. However, the selling was muted compared to the amount invested in top five buys. The benchmark Sensex has gained 7 per cent from its 2019 low touched on February 19. The rebound in the market has come on the back of strong buying by overseas investors. MFs, which are seeing moderation in equity inflows, have been seeing taking money off the table in the past three weeks amid the wave of foreign buying.