Mutual funds flocked to financial stocks in September attracted by their growth prospects even as they sold metal and retail stocks to cash in on the recent rally in these sectors.
According to data from Value Research, six out of 10 large-cap stocks bought most by mutual funds in September were financials.
“Predominantly, consumer lending is picking up. Due to lower cost of funds, there is uptick in margins for the intermediaries in this segment,” said Gopal Agrawal, chief investment officer (equities) at Tata Asset Management Co. Ltd. “Some corporate lenders were also preferred due to stock-specific positives and valuations,” he added.
Others shared the view.
