Mutual Funds invested $20,700 crore and FIIs purchased $13,100 crore in the Indian secondary market in March 2023. According to a new analysis by S&P Dow Jones Indices, the majority of Indian largecap equities mutual funds failed to outperform the benchmark, with 88% of actively managed funds lagging the S&P BSE 100 in 2022.
Major mutual fund houses purchased largecap equities such as Infosys, Reliance Industries, HDFC, and Tata Motors during the month of March 2023, according to monthly data analysed by local brokerages.
Vedanta, Hindustan Zinc, Ambuja Cements, Adani Total Gas, Adani Green Energy, Adani Ports and Special Economic Zone, Adani Transmission, Ultratech Cements, GAIL, Britannia, and SRF are among the top large-cap companies that MFs have sold.
Key entries to the midcap stock market were HDFC AMC, Sona BLW, Biocon, and Mahindra CIE. PB Fintech, Patanjali Foods, National Aluminium, and Container Corp. all experienced significant cutbacks.
Key additions to the small-cap market included Data Patterns, Divgi TorqTransfer, and Kirloskar Oil, while Zydus Wellness, Quess Corp, and Kalpataru Power had significant declines.
Mutual funds were observed actively purchasing equities across a range of industries and market groups, demonstrating their desire for a portfolio with a wide range of holdings. Also, they were seen selling equities in several markets and industries, suggesting that they were realigning their portfolios.
