How MFs churned large caps, mid-caps, and small caps in June 2025?

16 Jul 2025 , 09:23 AM

GROSS CHURN BY MUTUAL FUNDS IN JUNE 2025

June 2025 saw domestic equity funds get net inflows of ₹23,587 Crore; 24.1% above the May 2025 levels. Since December 2024, net equity fund inflows progressively fell for 5 months, before recovering in June 2025. To get a picture of mutual fund flows impact on equity buying and selling; we need to look at gross purchases and redemptions for June.

Net inflows into equity funds of ₹23,587 Crore comprised of gross purchases of ₹56,944 Crore and gross redemptions of ₹33,527 Crore. This total volume of ₹90,4714 Crore impacts equity buying and selling by mutual funds. Hybrid and passive equity are ignored here. We have broken up this churn into large cap, mid-cap, and small cap stocks for June 2025.

HOW MUTUAL FUNDS CHURNED LARGE CAP STOCKS IN JUNE 2025

For defining large caps; we stick to the AMFI classification of Top-100 stocks ranked by market cap. These are reviewed by AMFI twice a year. Here is large cap churn in June 2025.

Let us start with the mutual fund large cap buys first! Overall, the mutual funds added 447 Lakh shares of Asian Paints, 237 Lakh shares of Bajaj Finserv, 206 Lakh shares of Hindustan Zinc, 175 Lakh shares of Varun Beverages, 91 Lakh shares of Adani Energy Solutions, 88 lakh shares of Siemens Energy India, 46 Lakh shares of Trent Ltd, 35 Lakh shares of Adani Green Energy, 29 Lakh shares of IRFC Ltd, and 28 Lakh shares of Adani Enterprises. The focus was on energy, but, with a lot of large selling in Asian Paints, domestic mutual funds lapped up the opportunity to buy the stock at lower levels.

We now turn to major large cap selling by mutual funds in June 2025. The selling was visible in stocks as part of larger portfolio restructuring. There was heavy selling of 284 Lakh shares in Coal India, 168 Lakh shares of Tata Motors, 168 lakh shares of Indus Towers, 165 Lakh shares of Union Bank of India, 38 lakh shares of DLF Ltd, 36 Lakh shares of Nestle India, 36 Lakh shares of Zydus Lifesciences, and 25 lakh shares of TVS Motors. In addition, mutual funds sold smaller quantities in Solar Industries and Mazagon Dock Shipbuilders. The underlying theme on sell side was taking profits by leveraging the recent rally.

HOW MUTUAL FUNDS CHURNED MID-CAP STOCKS IN JUNE 2025

After identifying the top-100 large cap stocks, the stocks ranked 101st to 250th by market cap qualify as mid-cap stocks. Here is the buying and selling in mid-caps in June 2025.

Let us first focus on mid-cap buying in June 2025. Overall, mutual funds added 6,153 Lakh shares of Vishal Mega Mart, 956 Lakh shares of Biocon Ltd, 445 Lakh shares of Aditya Birla Capital, 115 Lakh shares of UCO Bank, 97 Lakh shares of Premier Energies, 90 Lakh shares of IREDA Ltd, 74 lakh shares of Indian Overseas Bank, 73 Lakh shares of Central Bank of India, and 44 Lakh shares of Kaynes Technology. In addition, mutual funds bought smaller quantities of Patanjali Foods in June 2025.

We turn to major mid-cap selling candidates in June 2025. Mutual Funds sold 454 Lakh shares of Canara Bank, 278 Lakh shares of NHPC Ltd, 125 Lakh shares of IndusInd Bank, 44 Lakh shares of Prestige Estates, 37 lakh shares of GIC RE, 18 lakh shares each of Jindal Stainless, and 15 Lakh shares of Tube Investments. In addition, June 2025 also saw smaller quantities of selling in Rail Vikas Nigam, Colgate Palmolive, and Cochin Shipyards. Interestingly, June 2025 saw some concerted buying in mid-cap banking stocks.

HOW MUTUAL FUNDS CHURNED SMALL CAP STOCKS IN JUNE 2025

The stocks ranked 251st and lower are classified as small caps by AMFI; although stocks below ₹10,000 Crore in market cap are classified as micro-caps. Here is the small cap action.

In June 2025, mutual funds added 1,007 Lakh shares of Niva Bupa Health Insurance, 457 Lakh shares of Capri Global Capital, 135 Lakh shares of IIFL Finance, 61 Lakh shares of Oswal Pumps, 40 Lakh shares of India Cements, 38 Lakh shares of Apollo Micro Systems, 32 Lakh shares of Sharda Motor Industries, and 26 Lakh shares of Camline Fine Sciences. In addition, mutual funds also purchased smaller quantities of Privi Specialty Chemicals and Arvind Smart Spaces Ltd in June 2025.

Let us conclude our churn analysis with the small-cap selling in the month of June 2025. Mutual funds sold 87 Lakh shares of SpiceJet Ltd, 20 Lakh shares of Sterling & Wilson Renewables, 16 Lakh shares of PSP Projects, 14 Lakh shares of GPT Healthcare, 11 Lakh shares of Aeroflex Industries, and 10 lakh shares of Taj GVK Hotels & Resorts. In addition, June 2025 also saw mutual funds selling smaller quantities in Cigniti Technologies, BLS International Services, Garden Reach Shipbuilders, and Force Motors Ltd.

Large cap buying was a lot more focused on energy, but interestingly, there was a lot of mid-cap buying in public sector banks in June 2025.