Tata Motors, Maruti Suzuki, M&M shares: Can mutual fund NFOs give these auto stocks a lift?
Nuvama said it won't be surprising if the two NFOs collectively raise Rs 2,000 crore or more in ongoing buoyant market.
- Aug 3, 2023,
- Updated Aug 3, 2023 1:59 PM IST
Two ongoing thematic new fund offers (NFOs) by HDFC Mutual Fund and Quant Mutual Fund could trigger buying interest in automobile stocks such as Tata Motors, Maruti Suzuki and Mahindra & Mahindra Ltd (M&M), similar to the one seen in defence stocks after the NFO of HDFC Defence Fund in May, Nuvama Alternative & Quantitative Research said in its latest note.
Quant Manufacturing Fund NFO will conclude August 8 while HDFC Transportation and Logistics Fund NFO will conclude on August 11. Nuvama said the funds would soon start deploying in basket of stocks, which meet the criteria. This anticipation of deployment may lead to lot of interest among the participants, which would start reflecting in stock prices, it said citing a rally in defence stocks, which was partially attributed to the HDFC Defence Fund NFO.
"As the NFOs are still ongoing, it's challenging to predict the exact money raised or potential AUM. However, considering the initial AUMs of two biggest similar theme schemes of past, it won't be surprising if both NFOs collectively raise Rs 2,000 crore or more in this buoyant market," Nuvama's Abhilash Pagaria said.
Nuvama said notable commonly held stocks in 'Transport & Logistics' funds across existing schemes included Maruti Suzuki, M&M and Tata Motors. Within midcaps schemes, Nuvama cited Ashok Leyland, Bharat Forge and Endurance Tech among a few common names. Within the small cap schemes, it found CIE Automotive and Jamna Auto among common names.
Table Transport
On the other hand, existing manufacturing schemes have commonly held largecap stocks such as Maruti Suzuki, M&M, Samvardhana Motherson. Within midcaps, it has Ashok Leyland.
Table Manufacturing
Two ongoing thematic new fund offers (NFOs) by HDFC Mutual Fund and Quant Mutual Fund could trigger buying interest in automobile stocks such as Tata Motors, Maruti Suzuki and Mahindra & Mahindra Ltd (M&M), similar to the one seen in defence stocks after the NFO of HDFC Defence Fund in May, Nuvama Alternative & Quantitative Research said in its latest note.
Quant Manufacturing Fund NFO will conclude August 8 while HDFC Transportation and Logistics Fund NFO will conclude on August 11. Nuvama said the funds would soon start deploying in basket of stocks, which meet the criteria. This anticipation of deployment may lead to lot of interest among the participants, which would start reflecting in stock prices, it said citing a rally in defence stocks, which was partially attributed to the HDFC Defence Fund NFO.
"As the NFOs are still ongoing, it's challenging to predict the exact money raised or potential AUM. However, considering the initial AUMs of two biggest similar theme schemes of past, it won't be surprising if both NFOs collectively raise Rs 2,000 crore or more in this buoyant market," Nuvama's Abhilash Pagaria said.
Nuvama said notable commonly held stocks in 'Transport & Logistics' funds across existing schemes included Maruti Suzuki, M&M and Tata Motors. Within midcaps schemes, Nuvama cited Ashok Leyland, Bharat Forge and Endurance Tech among a few common names. Within the small cap schemes, it found CIE Automotive and Jamna Auto among common names.
Table Transport
On the other hand, existing manufacturing schemes have commonly held largecap stocks such as Maruti Suzuki, M&M, Samvardhana Motherson. Within midcaps, it has Ashok Leyland.
Table Manufacturing