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    Mutual Fund Meter: Top stock picks & exits by MFs in September

    Synopsis

    The portfolio rejig comes ahead of the September quarter earnings season in which oil and gas and metal companies are expected to drag. “Sectors focused on domestic consumption, investments are likely to outperform the sectors dependent on global demand, cyclicals and commodities,” Motilal Oswal Financial Services said in a report.

    Mutual Fund Meter: Top stock picks & exits by MFs in SeptemberET Spotlight
    NEW DELHI: As equity mutual fund inflows doubled on a month-on-month basis to Rs 14,000 crore in September when the Sensex declined 3.5%, money managers picked stocks in healthcare and consumer sectors while dumping those related to oil and gas, IT and financials.

    Overall, the cash level of MF equity-oriented scheme was flat at 60,000 crore which is 4.9% of total assets under management (AUM).

    Healthcare sector saw higher buying (weight at 6.8%, up 35 bps MoM), followed by discretionary (at 7.9%, up 25 bps), staples (at 5.3%, up 20 bps), telecom & media (at 3.3%, up 17 bps), and building materials (at 3.8%, up 10 bps).

    Mutual funds reduced holdings in oil & gas (weight at 6.0%, -46 bps MoM), IT (weight at 9.7%, -26 bps), financials (weight at 31.4%, -25 bps), metals & mining (weight at 2.4%, -22 bps) and utilities (weight at 2.5%, -7 bps), shows data from Phillip Capital.

    The top 5 stocks bought by mutual funds in the month of September are:

    Largecaps – Bharat Electronics, NTPC, ONGC, PGCIL, Infosys

    MidcapsPNB, Bharat Heavy Electricals, NHPC, CG Power, IRFC

    SmallcapsUjjivan Small Finance Bank, Triveni Turbine, SJVN, G R Infra, Gateway Distriparks

    Top 5 stocks sold by MFs:

    Largecaps – Tata Steel, IOCL, GAIL, Vedanta, Tata Motors

    Midcaps – Vodafone, Motherson Sumi Wiring, Ashok Leyland, SAIL, Bank of India

    Smallcaps – Paradeep Phosphates, Hathway Cable, Manappuram Finance, Indiabulls Real Estate, Sterlite Technologies.

    Within the healthcare pack, MF favourites included Syngene International, Sun Pharma, Cipla, Vijaya Diagnostic Centre and Fortis Healthcare.

    In the consumer discretionary pack, Devyani International, United Spirits, Zomato, EIH and Berger Paints were among top picks.

    On the other hand, dropouts within the oil and gas segment include IOCL, GAIL, Gujarat State Petronet, Mangalore Refinery and Mahanagar Gas.

    The portfolio rejig comes ahead of the September quarter earnings season in which oil and gas and metal companies are expected to drag. “Sectors focused on domestic consumption, investments are likely to outperform the sectors dependent on global demand, cyclicals and commodities,” Motilal Oswal Financial Services said in a report.

    While the mood is bearish on export-oriented stocks, analysts are expecting domestic demand recovery to continue and propel discretionary consumption in India after a pandemic-induced hiatus of two years.

    Consumer discretionary will deliver strong numbers on account of price hikes, strong demand, and lower discounts provided during the quarter, Axis Securities said.

    (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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