Suzlon Energy shares among top MF smallcap picks in Jan; HDFC Bank, ITC, SBI, Vedanta among largecap buys

Suzlon Energy Ltd, Allcargo Logistics Ltd, Rain Industries Ltd and Karur Vysya Bank Ltd were some of smallcap stocks that top domestic mutual funds bought in January. SJVN Ltd, Indian Energy Exchange Ltd, CESC Ltd, South Indian Bank Ltd and NMDC Ltd were smallcap shares that the institutional category trimmed stakes to in the month gone by.
In the midcap space, MFs bought stocks of Bank of India Ltd, GMR Airports Infrastructure Ltd, Jubilant Foodworks Ltd, One 97 Communications Ltd (Paytm) and Nykaa among others. They trimmed stakes in midcap firms such as Vodafone Idea Ltd, NHPC, ZEE Entertainment Enterprises, IRFC and Federal Bank, among others.

In the largecap space, MFs were seen buying shares of HDFC Bank Ltd, Samvardhana Motherson, Vedanta Ltd, State Bank of India, ITC Ltd and Bank of Baroda, among others.

MF equity net flows for January came in at Rs 21,750 crore in January against Rs 16970 crore in December 2023; Ex-NFOs net flows stood Rs 20,780 crore against Rs 10640 crore in December, PhillipCapital said in a note.

In terms of sectors, oil & gas sector saw higher buying (MF weight at 6.5 per cent, up 60 bps month-on-month), followed by healthcare (at 7.4 per cent, up 31 bps), industrials (at 8 per cent, up 12 bps), utilities (at 3.6 per cent, up 10bps) and IT (at 9.5 per cent, up 8 bps).

MFs reduced holdings in financials (weight at 28.3 per cent, down 92 bps MoM), staples (weight at 4.8 per cent, down 25 bps MoM), agriculture & chemicals (weight at 2.3 per cent, down 19 bps MoM), discretionary (weight at 6.9 per cent, down 11 bps MoM), and others (weight at 1.3 per cent, down 4 bps MoM).

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