Bharat Dynamics, BHEL, BSE: Defence, power, capital market stocks dominate flexicap buying in May 2026

India's leading flexi-cap funds sharpened their focus on the country's capex and manufacturing themes in May 2026, with portfolio disclosures showing increased exposure to defence, power and capital market-linked businesses. Stocks such as Bharat Dynamics, Bharat Heavy Electricals (BHEL), BSE, Computer Age Management Services (CAMS), Premier Energies, Siemens, Solar Industries, Adani Enterprises, Samvardhana Motherson and Dixon Technologies emerged among the key beneficiaries of fresh buying.

The trend, visible across portfolios of Motilal Oswal Flexi Cap, HDFC Flexi Cap, Helios Flexi Cap and JM Flexi Cap, suggests fund managers remain optimistic about India's long-term industrial, infrastructure and financialization story.

Defence and industrial stocks

Defence and manufacturing companies witnessed strong investor interest during the month.

Motilal Oswal Flexi Cap made fresh additions to Bharat Dynamics, BHEL and Premier Energies, highlighting the fund's conviction in India's manufacturing and capital expenditure cycle.

JM Flexi Cap also added exposure to industrial and infrastructure themes, introducing stocks such as Titagarh Rail Systems, while increasing positions in companies including Larsen & Toubro and Samvardhana Motherson.

Helios Flexi Cap, meanwhile, raised its holdings in Solar Industries India, which has a growing defence business, and increased exposure to auto components through Samvardhana Motherson.

The buying reflects confidence in sectors benefiting from government spending, defence indigenization and the broader "Make in India" push.

Power and energy themes

Power and energy-related stocks also remained in favor.

Motilal Oswal Flexi Cap increased its allocation to Siemens, while Premier Energies and BHEL featured among fresh additions. Helios Flexi Cap added to its position in Power Grid Corporation of India, reinforcing its positive view on electricity transmission and infrastructure.

The continued interest in these companies comes amid expectations of rising power demand, renewable energy investments and large-scale infrastructure spending.

Fund managers appear to be positioning portfolios to benefit from India's energy transition and the expansion of industrial capacity.

Capital market stocks

Companies linked to India's growing financial ecosystem also attracted fresh investments.

Helios Flexi Cap introduced Computer Age Management Services (CAMS) and increased exposure to BSE Ltd., signaling confidence in the long-term growth of the country's capital markets.

HDFC Flexi Cap added ICICI Prudential Asset Management Company and Nippon Life India Asset Management, while several funds retained exposure to exchanges and financial infrastructure companies.

The moves indicate expectations that rising retail participation and increasing mutual fund inflows will continue to support earnings growth across the sector.

Adani Enterprises in focus

Another noteworthy trend during May was renewed interest in Adani Enterprises.

Both Helios Flexi Cap and JM Flexi Cap added the stock to their portfolios, reflecting improving sentiment toward the Adani Group and confidence in its infrastructure and energy businesses.

The additions underscore the willingness of some fund managers to selectively participate in sectors linked to logistics, energy transition and infrastructure development.

India's capex story

Despite following different investment approaches, several flexi cap managers appear to be converging around one broad theme: India's long-term capex cycle.

From defence manufacturers and renewable energy companies to market infrastructure firms and industrial businesses, fund managers are increasingly positioning portfolios around structural growth opportunities rather than short-term market fluctuations.

The latest portfolio disclosures suggest that the themes of defence, power and financialization continue to dominate institutional thinking, with stocks such as Bharat Dynamics, BHEL and BSE emerging as some of the standout beneficiaries of flexi cap buying in May 2026.