Equity mutual fund bringing big changes to stocks

Nowadays Equity mutual fund is betting real big on IT (information technology) and banking stocks. In the month of may, fund managers best choices were Infosys, HCL Technologies, State Bank of India (SBI) and HDFC Bank. In fact, alone HCL tech’s purchase made an amount of Rs 935 crore in this month. Apart from this fund houses were bought Infosys to the tune of Rs 1,144 crore during the month of may which was the second highest among top large-cap stocks.

The fund managers of equity mutual funds bought HDFC and SBI Bank scrips to the tune of Rs 693 crore and Rs 557 crore, which resulted in increased interest rates in banks. Though HDFC BANK successfully tried to maintain the identity mark of the most-owned scrip by fund houses in value terms the market value of equity mutual fund holdings in HDFC Bank stood at Rs 53,103 crore.

Equity mutual fund

ICICI Bank stood at the second position in the market with the total value of mutual fund holdings in the scrip of Rs 27,650 crore and was showcased by Morningstar Investment Adviser with the help of data compilation.

According to a news, the majority of the mutual fund’s overall holdings were in fact directed to the HDFC, ICICI, SBI and Kotak Mahindra Bank simultaneously. And the total value invested in these banks by the fund managers are around Rs 1,22,047 crore. In the month of may, there was a huge hike in the banking stocks and out of 10 stocks these 4 stocks registered the highest change in terms of value. SBI recorded the highest increase with 11.9% hike while HDFC Bank recorded highest rates were at 11.1% and Kotak Mahindra and Axis Bank saw a gain increase of around 8%.

Equity mutual fund
In the month of may, there was a big notable change in the sector and stock allocation of funds. The IT companies weight increased 0.3 per cent MONTH ON MONTH and by 1.2 per cent (y-oy) to 8 per cent overtook capital goods and the companies whose weight declined 0.4 per cent m-o-m and 1 per cent y-o-y to 7 per cent, to take the fourth position in terms of sector allocation of mutual funds. During this situation, HDFC was the prior choice of the buyers and investors and it was the most bought large-cap stock in the month of May.

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