Investors are often on the lookout for what mutual funds (MFs) are buying and selling to understand market trends and make informed investment decisions.
Retail investors often gravitate towards mid-cap and small-cap stocks as these counters have the possibility of delivering higher returns but at the cost of higher risk.
According to data released by Motilal Oswal Financial Services, MFs were net buyers in 60% of the Nifty Midcap 100 stocks and 53% of the Nifty Smallcap 100 stocks last month.
Top mid-cap & small-cap purchases
Yes Bank, HUDCO, Tata Elxsi, Godrej Properties, and Indian Renewable Energy Development Agency (IREDA) were among the top five purchases by MFs in December.
MFs’ stake in Yes Bank surged a whopping 166.7% month-on-month (MoM), taking their total shareholding value in the banking counter to ₹430 crore.
Similarly, in HUDCO, MFs increased the number of shares held by 93% to 28.9 million units. In Tata Elxsi, Godrej Properties, and IREDA, shares held by MFs rose 77.6%, 44%, and 38.8%, respectively.
| Company | Value Dec-24 (INR B) | Value Chg MoM (%) | Shares Dec-24 (M) | Shares Chg MoM (%) |
| Yes Bank | 4.3 | 161.8 | 218.6 | 166.7 |
| HUDCO | 6.8 | 89.6 | 28.9 | 92.8 |
| Tata Elxsi | 7.4 | 81 | 1.1 | 77.6 |
| Godrej Properties | 42.4 | 44.5 | 15.2 | 44 |
| Indian Renewable | 1.5 | 45.6 | 6.9 | 38.8 |
Meanwhile, from the Nifty Smallcap 100 index, Signature Global, Mahanagar Gas Limited (MGL), CPCL, Narayana Hrudaya, and J&K Bank were the top purchases of MFs in December.
The number of shares held by them in these companies witnessed an increase of 12-40%.
| Company | Value Dec-24 (INR B) | Value Chg MoM (%) | Shares Dec-24 (M) | Shares Chg MoM (%) |
| SignatureGlobal | 2.4 | 42.7 | 1.7 | 40.9 |
| Mahanagar Gas | 9.7 | 40.7 | 7.6 | 30.5 |
| CPCL | 1.3 | 26 | 2 | 26.2 |
| Narayana Hrudaya | 14.4 | 14.6 | 11.3 | 14.1 |
| J&K Bank | 4.2 | 16.4 | 41.4 | 12.6 |
Top mid-cap & small-cap sells
On the other hand, mid-cap stocks where MFs booked profits include Tata Technologies, Rail Vikas Nigam (RVNL), Vodafone Idea, Hindustan Zinc, and L&T Finance.
Tata group stock Tata Technologies saw a 16% decline in the number of shares held by MF to 2.9 million in December. Meanwhile, in telecom company Vodafone Idea, they reduced the shares held by them by 13% MoM.
| Company | Value Dec-24 (INR B) | Value Chg MoM (%) | Shares Dec-24 (M) | Shares Chg MoM (%) |
| Tata Technologies | 2.6 | -20.4 | 2.9 | -16.1 |
| Rail Vikas | 1.2 | -18.4 | 2.8 | -15.8 |
| Vodafone Idea | 18.5 | -17.5 | 2,332.10 | -13.1 |
| Hindustan Zinc | 1.4 | -20.8 | 3.1 | -10 |
| L&T Finance Ltd | 20.4 | -11.9 | 150.7 | -7.5 |
Lastly, Blue Star, Brigade Enterprises, Aadhar Housing Finance, ITI, and Piramal Pharma were their top five sells from the Nifty Smallcap 100 pack.
| Company | Value Dec-24 (INR B) | Value Chg MoM (%) | Shares Dec-24 (M) | Shares Chg MoM (%) |
| Blue Star | 80 | 14.2 | 37.4 | -1.1 |
| Brigade Enterprises | 60.5 | -1 | 48.7 | -1.1 |
| Aadhar Housing Fin. | 7.1 | -3.6 | 16.7 | -1.3 |
| ITI | 0.1 | 33.3 | 0.3 | -1.3 |
| Piramal Pharma | 36.4 | -2.5 | 136.6 | -1.6 |
Sectoral Watch
In December, MFs showed more interest in sectors like Healthcare, Retail, Consumer Durables, Technology, and Real Estate, which led to an increase in their share in the portfolio.
On the other hand, sectors such as Private Banks, Capital Goods, Utilities, Automobiles, Consumer, Oil & Gas, NBFCs, PSU Banks, Metals, Chemicals, Insurance, and Media saw a decrease in their share.
Private Banks had the largest share (16.6%) in MFs’ portfolios, followed by Technology (9.4%), Automobiles (8.2%), and Capital Goods (7.8%). Sectors like Consumer Durables, Retail, Real Estate, Healthcare, and Textiles saw the biggest rise in value compared to the previous month.
Equity mutual funds recorded a net increase in inflows in December, recording a near 15% increase over last month at ₹41,155 crore, with mid-cap, small-cap, and thematic funds leading the charge.
Disclaimer: This story is for educational purposes only. Please speak to an investment advisor before making any investment decisions.
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