Vedanta shares a new entry in largecap MFs in October; Adani Energy, IDBI Bank complete exits

Vedanta Ltd was one stock that largecap mutual funds (MFs) made entry to in October. The largecap funds, on the other hand, exited IDBI Bank and Adani Energy Solutions Ltd in the month gone by, a study by Abhilash Pagaria of  Nuvama Alternative & Quantitative Research suggests. The month saw mutual funds buying Rs 19,900-odd crore worth of shares. This was against  FII outflows of Rs 26,900 crore in the Indian secondary market.

As per Pagaria, significant buying in the largecap MF schemes was seen in Kotak Mahindra Bank Ltd, Cipla Ltd and Maruti Suzuki Ltd while highest selling was seen in Infosys, State Bank of India and Cholamandalam Investment & Finance Company Ltd. Vedanta was a new entry while IDBI Bank and Adani Energy Solution were complete exits.

"The resilience of local/retail participants has once again defied the equity bears. Despite volatility and weak market performance in October (Nifty down 2.8 per cent and Midcap down 4 per cent), equity schemes continued to attract strong inflows. Equity mutual funds (growth schemes) saw a substantial net inflow of Rs 20,000 crore in October 2023 vs Rs 14,100 crore in September 2023), marking the third-highest flows in 2023," Pagaria said.

Net-net, Kotak Mahindra Bank Ltd saw Rs 1,250 crore worth MF buying in October. MFs held 20.17 crore shares in October against 19.45 crore shares in September. ICICI Bank saw a total Rs 1,070 crore worth buying. Reliance Industries, HDFC Bank and Tech Mahindra saw MF buying to the tune of Rs 1,050 crore, Rs 1,020 crore and Rs 990 crore, respectively.  

State Bank of India Ltd (SBI) saw MF trimming exposure by Rs 1,090 crore. MFs cut exposure to Infosys Ltd by Rs 710 crore. ONGC and Bandhan Bank also witnessed selling to the tune of Rs 460 crore and Rs 350 crore, respectively.

Among largecaps, Reliance Industries, HDFC Bank, ICICI Bank, LIC and Kotak Mahindra Bank saw MF buying for three consecutive months. Key reductions, as per Nuvama, included Infosys, SBI, Bajaj Finance, IOC and IRFC.

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