Domestic MFs flock to Eternal, trim bets on Maruti, D-Mart, NTPC

Mutual funds increased exposure to Eternal in August as the stock surged over 60 per cent in six months, crossing Rs 3 trillion in market cap, with Blinkit leading growth

Domestic mutual funds (MFs) ramped up their bets on Eternal (formerly Zomato), picking up shares worth ₹ 7,200 crore in August, as the stock surged to record highs and crossed the ₹3-trillion market cap milestone.

 

Eternal’s shares have leapt over 60 per cent in the past six months, propelled by robust revenue growth and Blinkit’s quick commerce business overtaking its legacy food delivery segment. Analysts attribute this MF buying spree to Eternal’s clear growth visibility and its leadership in both food delivery and quick commerce.

 

According to Nuvama Alternative & Quantitative Research, Infosys (₹5,000 crore) and HDFC Bank (₹3,100 crore) were also among the top picks by fund managers. Despite uncertainty around AI-driven disruption in the IT sector, MFs viewed Infosys’s below-average valuations and the potential tailwind from a weakening rupee as attractive entry points.

 

 

On the other hand, institutional investors booked profits in Maruti Suzuki, offloading ₹3,100 crore as the stock soared on sector-wide optimism after the GST cut. Fund managers likely trimmed Maruti holdings after a sharp rally, while remaining constructive on its long-term prospects.

 

Avenue Supermarts (D-Mart) and NTPC similarly saw MFs prune their exposure. Analysts highlight that D-Mart’s reduction stemmed from concerns over shrinking margins and earnings downgrades, weighed down by the rising competition from quick commerce players. In NTPC’s case, moderation in revenue growth and a muted outlook for the sector prompted cautious repositioning.