Equity fund inflows increased for the third consecutive month in June 2019 to touch Rs.7,367 crore, shows AMFI data. Despite the index seesawing, inflows grew by a whopping 42% compared to May 2019. Re-election of the previous government, dovish Fed stance and low oil prices positively influenced investor sentiment leading to increased flows. With the increase in fund flows, mutual funds too churned their portfolios adding exposures to certain stocks and exiting others.
Let us look at the top mutual fund picks and exits in June 2019.
On a consolidated level, large caps, GAIL, Cadila, Godrej Consumer, Hindustan Zinc and JSW Steel witnessed highest buying during the month, shows an ICICI Direct report. Meanwhile, UPL, Piramal Enterprises, Yes Bank, Indiabulls Housing Finance and Bandhan Bank saw the highest selling in the large cap space.
|
Top 10 Buys in Largecap |
Increase in number of shares (Lakhs) |
|
GAIL (India) |
552 |
|
Ashok Leyland |
162 |
|
Cadila Healthcare |
120 |
|
Tech Mahindra |
68 |
|
JSW Steel |
55 |
|
Hindustan Zinc |
21 |
|
Bharti Infratel |
15 |
|
Godrej Consumer Products |
13 |
|
Hero MotoCorp |
13 |
|
Page Industries |
1 |
While Ashok Leyland and Page Industries were among the top picks in large cap space, they were recategorised as mid-caps by AMFI in July. According to SEBI norms, mutual funds have to rebalance their portfolios in line with the updated list within one month. Consequently, we may see mutual funds reducing their exposure in these stocks in the coming month.
|
Top 10 Sells in Largecap |
Decrease in number of shares (Lakhs) |
|
Yes Bank |
-285 |
|
Oil & Natural Gas Corporation |
-243 |
|
Power Grid Corporation Of India |
-211 |
|
UPL |
-131 |
|
Tata Steel |
-82 |
|
Bandhan Bank |
-24 |
|
Biocon |
-20 |
|
Indiabulls Housing Finance |
-14 |
|
Larsen & Toubro Infotech |
-9 |
|
Piramal Enterprises |
-4 |
In the mid cap space, Shriram Transport, Hindustan Aeronautics, Emami, Godrej Properties and Glenmark Pharma saw more interest from mutual fund industry while Graphite, GMR Infra, Quess Corp, Apollo Tyre and Godrej Agrovet fell out of favour in June.
|
Top 10 Buys in Midcap |
Increase in number of shares (Lakhs) |
|
Emami |
354 |
|
Shriram Transport Finance Company |
101 |
|
Dish TV India |
54 |
|
Reliance Nippon Life Asset Management |
25 |
|
Glenmark Pharmaceuticals |
20 |
|
LIC Housing Finance |
20 |
|
Godrej Properties |
19 |
|
Mindtree |
15 |
|
Hindustan Aeronautics |
8 |
|
Escorts |
7 |
Among the top picks in mid cap space, Escorts was moved to small cap by AMFI, consequently we may see some sell-off in the stock in July.
|
Top 10 Sells in Midcap |
Decrease in number of shares (Lakhs) |
|
GMR Infrastructure |
-444 |
|
Apollo Tyres |
-210 |
|
Graphite India |
-27 |
|
Muthoot Finance |
-24 |
|
Quess Corp |
-23 |
|
CESC |
-23 |
|
Oil India |
-19 |
|
PNB Housing Finance |
-17 |
|
Godrej Agrovet |
-7 |
|
SRF |
-4 |
On an aggregate basis smallcap stocks like Aster DM Healthcare, Vaibhav Global, CCL Products, Fortis Healthcare and DB Corp witnessed highest buying during June 2019 while TV18, GSFC, South Indian Bank, Max India and IDFCLtd saw the highest selling, shows the ICICI Direct report.
|
Top 10 Buys in Smallcap |
Increase in number of shares (Lakhs) |
|
Aster DM Healthcare |
89 |
|
Fortis Healthcare |
59 |
|
Manappuram Finance |
46 |
|
Vaibhav Global |
18 |
|
SH Kelkar & Co |
13 |
|
DB Corp |
10 |
|
CCL Products (India) |
9 |
|
Dhanuka Agritech |
6 |
|
Welspun Enterprises |
4 |
|
Procter & Gamble Health |
1 |
Fortis Healthcare meanwhile was upgraded to mid-cap by AMFI, MFs investing in the stock may need to reduce their position in the stock.
|
Top 10 Sells in Smallcap |
Decrease in number of shares (Lakhs) |
|
IDFC |
-579 |
|
The South Indian Bank |
-523 |
|
TV18 Broadcast |
-368 |
|
The India Cements |
-197 |
|
Gujarat State Fertilizers & Chemicals |
-77 |
|
Max India |
-60 |
|
The Karnataka Bank |
-60 |
|
Can Fin Homes |
-9 |
|
Ceat |
-5 |
|
Godfrey Phillips India |
-3 |
Among the top fund houses, HDFC MF added exposure in Aster DM Healthcare Ltd., NLC India Ltd and Shriram Transport Finance Company in June 2019. Meanwhile, NLC India, Sun TV Network and LIC Housing Finance were the top buys of ICICI Prudential MF and Emami, GAIL (India) and Power Grid Corporation of India were top buys of SBI MF.
Note: Largecaps/Midcaps/Smallcaps as defined by AMFI. Stocks above Rs. 50 crores holding were considered
