BHEL, Waaree, ABB among top capital goods buy of MFs in Feb; Suzlon, BEL among top sells

Indian equity mutual funds (ex-arbitrage funds) recorded inflow of Rs 37,600 crore in February 2026, falling nearly 2 per cent on a month-on-month (MoM) basis, taking total SIP asset under management (AUM) to Rs 16.6 lakh crore, 1.7 per cent higher MoM. Outstanding SIP accounts increased by 16 lakh on a MoM basis.

According to JM Financial, Bharat Heavy Electricals (BHEL) , Waaree Energies , Apar Industries, ABB India and Craftsman Automation were among the top capital goods buys of mutual funds in February 2026, while Bharat Electronics (BEL), GE Vernova and Suzlon Energy were among the top sells for the month. The sector saw inflows of Rs 1,737.3 crore during the month.

On a sectoral basis, Private banks (including HDFC Bank, ICICI Bank, Bandhan Bank, IndusInd Bank) saw the highest inflows of 16,412.1 crore, followed by IT services (including Infosys, Coforge, HCL Tech, TCS) with Rs 12,741.2 crore of inflows. E-commerce stood third with inflows of Rs 8,108.7 crore, followed by retail, telecom services and capital goods sectors.

Top five sectors that domestic MFs are overweight vis-a-vis BSE 200 include pharma & healthcare, e-commerce, consumer durables, capital goods and agrochemicals & petrochemicals. Besides this, they took exposure to sectors such as building materials, media, sugar and diversified. Top five sectors that domestic MFs are underweight are private banks, oil & gas, metals & mining, consumer and IT services.

On the sell side, PSU Banks (including State Bank of India, Union Bank of India, UCO Bank) saw outflows of Rs 8911.2 crore, followed by NBFC sector (including Bajaj Finance, Jio Financial Services, BSE, AB Capital) with outflows of Rs 6,127.7 crore. Auto sector was third in outflows followed by metal, engineering and utilities.

The report from JM Financial noted that HDFC Bank (Rs 7,231.1 crore inflow), ICICI Bank (Rs 5,649.1 crore inflow), Infosys (Rs 5,614.6 crore inflow), Eternal (Rs 3,287.8 crore inflow), Kotak Mahindra Bank (Rs 3,100.1 crore inflow), PB Fintech (Rs 2,955.7 crore inflow), BHEL (Rs 2,833.8 crore inflow), Vishal Mega Mart (Rs 2,089.4 crore inflow), HCL Tech (Rs 1,928.5 crore inflow) and Bharti Airtel (Rs 1,748.8 crore inflow) were the top-10 additions of mutual funds in the report month.

Similarly, top-10 reductions in the reported period included names like State Bank of India (Rs 8,914.4 crore outflow), Larsen & Toubro (Rs 2,541.4 crore outflow), Bajaj Finance (Rs 2,215.9 crore outflow), Power Grid (Rs 2,211 crore outflow), Vedanta (Rs 1,807.3 crore outflow), Bharat Electronics (Rs 1,526.5 crore outflow), Jio Financial Services (Rs 1,585.2 crore outflow), APL Apollo Tubes (Rs 1,480.3 crore outflow), Godrej Properties (Rs 1,388.3 crore outflow) and Maruti Suzuki India (Rs 1,344.7 crore outflow).

Other top addition by MFs including names like Coforge, IndusInd Bank, InterGlobe Aviations, Tata Motors PV and MCX with inflows of Rs 1,142 crore to Rs 1,680 crore, while reductions also added the likes of Sun Pharma, BSE, Aditya Birla Capital, NPTC and HDFC AMC will selling of shares worth Rs 1,141 crore to Rs 1,283 crore.

The number of new SIPs registered (gross) decreased by 8 lakh to 66 lakh in February 2026. Furthermore, closure of SIP accounts stood at 50 lakh, taking the ratio of discontinued SIPs as a percentage of new SIPs to 76 per cent. Number of total contributing SIP accounts in February 2026 decreased to 9.44 crore.