Mutual funds saw the highest ever outflows in November as investors booked income pulling away Rs 12,917 crore. Asset Under Management (AUM) of funds grew to Rs 30 lakh crore in the similar month. The contrasting trends emerged in a month that saw the 50-stock NSE Nifty scale to fresh highs repeatedly. Domestic mutual funds, meanwhile, had been observed growing holdings in monetary stocks, which had been so far regarded as risky for the anticipated jump in non-performing assets. On the other hand, sectors such as healthcare and information and facts technologies witnessed promoting from mutual funds, information sourced by brokerage firm Motilal Oswal stated.
Fund homes shop monetary stocks
Weight of private banks improved for the second consecutive month in November to 18.7%, its highest given that January this year. Non-banking monetary businesses (NBFC) had been also preferred by domestic fund homes growing their weight to a nine-month higher of 8.9%. Other sectors exactly where mutual funds showed interest had been, PSU banks, capital goods, metals, and automobiles. On-month basis, the weight of state-owned lenders improved 29.3% whilst that of the metal sector improved 22.2%.
Healthcare and information and facts technologies sector stocks, the silver lining for investors earlier this year, witnessed promoting in November. IT sector weight was decreased .8% in the prior month whilst that of the healthcare sector was trimmed by .3%. Despite this each the sectors continued to stay the major sector holding for mutual funds. Consumer sector weightage was decreased for the sixth consecutive month to a low of 7.9%. Oil & Gas sector weightage hit a nine-month low of 7.6%.
Net sellers
Mutual funds had been net sellers of 80% of Nifty 50 stocks in the month of November. The highest reduction came in for Bajaj Finserv shares, seeing an 18.9% fall. This was followed by IndusInd Bank, Nestle India, Tata Steel, and Tech Mahindra, all seeing double digit decline. Adani Ports, Dr Reddys Laboratories, HCL Technologies, Maruti Suzuki, Grasim, and UPL had been the only stocks to register more than 1% on-month development.
Top weightage modifications
SBI Mutual Fund’s major weightage modifications in November integrated HDFC Bank, Gland Pharma, Bajaj Finance, and ICICI Bank. HDFC Mutual Fund was also observed growing the weightage of financials with SBI, HDFC Bank, and ICICI Bank. ICICI Prudential’s major allocations had been also from the banking space as it improved the weightage of HDFC Bank, ICICI Bank, SBI, and Axis Bank.