Fund managers bulk up on financial stocks in September, shows data

Fund managers bought financial stocks in September amid strong inflows into equity-oriented schemes. HDFC Bank, SBI Life, SBI Cards, and Axis Bank were among the stocks that saw the highest investments – Rs 5,200 crore cumulatively – in the month. Max Healthcare Institute cornered the highest investment at Rs 1,992 crore though the stock fell nearly 7 per cent in September. 

Private equity major KKR divested nearly 7 per cent stake in the company, which fund managers used to increase exposure to the stock. In the mid-cap space, some of the notable buys were Vodafone Idea, whose stock nearly doubled following the government’s relief package for the telecom sector; Bharat Forge and Bata India. In the small-cap universe, CanFin Homes and Arvind Fashion were the most-bought stocks. Meanwhile, fund managers booked profits in IRCTC. 

Shares of the state-owned firm have jumped nearly four times this year. Bharti Airtel saw selling of Rs 5,225 crore ahead of its rights issue. Experts said fund managers liquidated their holdings to subscribe to its rights issue. 

HDFC Life and Reliance Industries (RIL) also featured in the most-sold list. CAMS and Granules India were the most-sold stocks in the mid-cap and small-cap space, respectively. In September, equity MFs saw inflows of Rs 8,670 crore, while they deployed Rs 7,100 crore in stocks.