Major large cap, mid cap and small stocks churned by MFs in Sep-21

September 2021 was significant for mutual funds as it was the first month to see over Rs10,000cr of SIP inflows.

Oct 18, 2021 09:10 IST India Infoline News Service

September 2021 was significant for mutual funds as it was the first month to see over Rs10,000cr of SIP inflows. However, the month was also a story of how mutual funds churned their equity portfolios in a calibrated manner. Net equity inflows of Rs8,677cr in Sep-21 may not be the full picture. Gross inflows of Rs36,657cr and gross outflows of Rs27,980cr indicate that mutual funds churned their equity portfolios a good deal.

Here we look at how mutual funds tweaked their overall portfolios across large caps, mid-caps and small caps with focus on specific stocks that saw biggest gains or losses in holding in percentage terms.

Major changes in large cap holdings of mutual funds in Sep-21

The table below captures the top percentage accretions and the top reductions in stock holdings of mutual funds. This pertains to large cap stocks, as defined by AMFI.

Big Stock Buys (Sep-21) Percentage Rise # Big Stock Sells (Sep-21) Percentage Fall #
HDFC AMC +51.72% Yes Bank -41.12%
Piramal Enterprises +50.00% Indus Towers -34.82%
Adani Enterprises +46.34% Adani Green Energy -13.04%
SBI Cards +22.12% HDFC Life Insurance -12.18%
Interglobe Aviation +21.78% Bharti Airtel -10.89%
Data Source: MF Filings (# refers to percent rise/fall in number of shares held)

The increase in number of shares may be biased in favour of smaller share values and the value changes may be vulnerable to stock price movements. Hence we look at  percentage change in number of shares held.

Mutual funds hiked their stake substantially in HDFC AMC; largely the block sold by Standard Life. Piramal attracted MF buying interest after its restructuring comprising the integration of DHFL and hiving off the pharma franchise. Adani Enterprises was more of a value bet on the incubation efforts of Adani group while SBI Cards and Interglobe Aviation were macro bets on the revival in consumer demand, post-pandemic.

Among big sells, mutual funds have been uncomfortable with financials of Yes Bank and its recent battle for control of Dish TV. Indus Towers saw profit booking along with Bharti after the sharp rally while HDFC Life saw pressure on expectations of another round of selling by Standard Life. Overall, the churn in Sep-21 was extremely focused.

Major changes in mid-cap holdings of mutual funds in Sep-21

The table captures the top percentage accretions and reductions in stock holdings of mutual funds in mid-cap stocks in Sep-21.

Big Stock Buys (Sep-21) Percentage Rise # Big Stock Sells (Sep-21) Percentage Fall #
Vodafone Idea +181.30% IRCTC Ltd -30.28%
Max Healthcare +66.43% Sun TV -23.71%
Canara Bank +31.40% Nippon India Life AMC -12.93%
L&T Finance Holdings +25.61% Dr. Lal Pathlabs -12.90%
GMR Infrastructure +19.77% Linde India -9.09%
Data Source: MF Filings (# refers to percent rise/fall in number of shares held)

Mutual funds hiked their stake substantially in Vodafone, after the telecom relief package announced by the government. Max Healthcare attracted attention after positive guidance. Canara Bank was more a participation in the fund raising by the bank, in which even ace investor Rakesh Jhunjhunwala had participated. GMR buying was more in anticipation of their airport business revamp and zero-debt plans.

Among the big sells, mutual funds sold into IRCTC, which is logical after the stock turned 10-bagger in two years of listing. IRCTC rallied over 50% this year itself. Institutions are finding Zee reasonably priced media franchise compared to Sun TV while the selling in Nippon India AMC and Dr. Lal Pathlabs was profit booking after a sharp rally. Linde India had been in the limelight due to enhanced gas demand but that value story may be waning.

Major changes in small-cap holdings of mutual funds in Sep-21

The table captures top percentage accretions and reductions in stock holdings of mutual funds in small-cap stocks in Sep-21. Small caps stock action is normally stock-specific.

Big Stock Buys (Sep-21) Percentage Rise # Big Stock Sells (Sep-21) Percentage Fall #
Kolte Patil +280.00% GNFC Ltd -40.00%
PTC India +204.00% Laxmi Organics -36.84%
Action Construction +100.00% Granules India -35.11%
India Glycols +75.00% Railtel Corporation -26.67%
Arvind Fashions +56.98% Easy Trip Planners -25.00%
Data Source: MF Filings (# refers to percent rise/fall in number of shares held)

Mutual funds hiked their stake in Kolte Patil as a proxy for the burgeoning housing demand in the fast-growing Pune region. Realty stocks have been in the limelight. PTC India appears to be a play on the power shortage in India while India Glycols has been on the radar of investors due to its strong distillation and ethanol franchise.

Mutual funds have sold out of GNFC and Granules India. Both are cases of profit booking and limited visibility for near future. There were two IPOs which rallied sharply post the issue where profit taking was seen. These include Laxmi Organics and Easy Trip; both multi-baggers since listing.

It has been a busy month for mutual funds with aggressive churning across market-cap categories. In a way, MFs have used this rally to smartly tweak allocations.

Related Story

Open Free Demat Account (Rs699)
Open ZERO Brokerage Demat Account

  • 0

    Delivery Brokerage for Lifetime

  • 20

    Per order for Intraday, F&O, Currency & Commodity