Fund managers lapped up IT stocks in April after index correction

As per an analysis by Nuvama Alternative & Quantitative Research, companies in the information technology (IT) sector found favour among fund managers following a sharp correction in the IT index

Markets rose for a second straight month in April with net flows from both domestic mutual funds (MFs) and foreign portfolio investors (FPIs) remaining positive.  MFs bought shares worth ₹17,000 crore, while FPIs pumped in ₹10,400 crore. Monthly disclosures by equity MF schemes gives a peak into companies that were on the radar for fund managers.  According to an analysis by Nuvama Alternative & Quantitative Research, companies in the information technology (IT) sector found favour among fund managers following a sharp correction in the IT index. MFs pumped in close to ₹3,000 crore in Infosys and another ₹2,400 crore in Tata Consultancy Services (TCS). 

  Coforge too was in the top five most-bought stocks in April. Meanwhile, fund managers pared their exposure to ITC, Bharti Airtel, and ICICI Bank during the month. In the midcap space, RBL Bank, Syngene International, and KEI Industries were the most favoured, while Ujjivan Small Finance Bank (SFB), Equitas SFB, and Usha Martin piqued fund managers’ attention in the smallcap space.