As the Indian equity market makes fresh peaks, domestic mutual funds, which have been witnessing continued strong money inflows, are churning their portfolios and buying stocks which offer margin of safety or value.
According to data provided by Morningstar India on mutual fund activity in June, the top 10 purchases by mutual funds during the month were SBI, ICICI Bank, Infosys, Petronet LNG, ONGC, HDFC, ITC, Vedanta, Aurobindo Pharma and Kotak Mahindra Bank. Most of the above stocks have either been underperformers (SBI, ICICI Bank) or have been beaten down due to sectoral headwinds (Infosys, Aurobindo) or provide better business prospects (Kotak, HDFC) over the last six months.
