.jpeg)
In August 2024, mutual funds invested Rs 356 billion in the Indian secondary market. Major additions included Axis Bank (Rs 31 billion), Ola Electric (Rs 27 billion), and Brainbees Solutions (Rs 25 billion). Significant reductions were seen in HDFC Bank (Rs 83 billion), Bharti Airtel (Rs 19 billion), and Zydus Lifesciences (Rs 15 billion). For three consecutive months, funds favored Larsen & Toubro, ITC, and Maruti Suzuki in the large-cap segment while reducing their holdings in Bharti Airtel. Notably, mutual funds exited their position in Adani Enterprises entirely.
Key Additions
1. Axis Bank (Rs 31 billion): Axis Bank emerged as a significant addition, with mutual funds investing Rs 31 billion. The bank’s robust financial performance and strategic initiatives have made it an attractive option for fund managers seeking stability and growth in the banking sector.
2. Ola Electric (Rs 27 billion): Ola Electric saw a substantial inflow of Rs 27 billion. The company’s innovation in the electric vehicle (EV) sector and its expanding market presence have caught the attention of investors aiming to capitalize on the growth of sustainable transportation.
Key Reductions
1. HDFC Bank (Rs 83 billion): HDFC Bank experienced the largest reduction, with mutual funds pulling out Rs 83 billion. This move may reflect concerns over valuation or a strategic shift towards other investment opportunities in the financial sector.
2. Bharti Airtel (Rs 19 billion): For the third consecutive month, mutual funds reduced their stake in Bharti Airtel. Despite its strong position in the telecommunications sector, fund managers might be reassessing the stock in light of regulatory pressures or competitive dynamics.
Large-Cap Trends
In the large-cap segment, mutual funds continued to show preference for Larsen & Toubro, ITC, and Maruti Suzuki for three consecutive months. These stocks have demonstrated strong performance and stability, making them perennial favorites for large-cap investments. Conversely, Bharti Airtel remained a primary reduction target, reflecting a cautious stance on its future prospects.
Conclusion
In August 2024, mutual funds rebalanced their portfolios with key additions like Axis Bank, Ola Electric, and Brainbees Solutions, focusing on stability and growth. Reductions in HDFC Bank, Bharti Airtel, and Zydus Lifesciences indicate strategic shifts. These moves underscore the importance of active portfolio management amid changing market conditions.
