Despite concerns around high valuations, equity fund managers deployed Rs.19,700 crore in the secondary market in July. This is the highest monthly deployment in 2021, according to a report by Edelweiss Alternative Research.
Mutual funds also deployed Rs.5,900 crore in IPOs. Zomato received the major chunk of this amount at Rs 4,448 crore. Mutual funds together bought 33 crore shares of the food delivery platform in July. The rest of the IPO fund mostly went into GR Infra (Rs.1,083 crore) and Tatva Chintan Pharma (Rs.210 crore).
A report released by ICICI Direct shows that NMDC, Yes Bank, Britannia Industries, Adani Enterprises and United Spirits were the top large-cap buys in July. Mutual funds took out the largest amounts from Colgate Palmolive, Grasim Industries, SAIL, Havells and Cadilla Healthcare in the large-cap category.
In midcaps, GMR Infrastructure and Indraprastha Gas were the top buys. Alkyl Amines Chemicals and Canara Bank were the top sells. In smallcaps, Alicon Castalloy and Housing and Urban Development Corporation were the most in demand.
