Top Stocks Bought and Sold by Mutual Funds in Sept 2020
Credit: North Loop
Introduction -
This month the trend observed was against banks with most of the funds exiting the banking stocks. You could see most mutual fund buying stocks in the tech sector along with some others like Bharti Airtel and Maruti Suzuki. The latter being a part of the list because they offered bargains at lower prices. The stocks sold included SBI, ICICI Bank and HDFC Bank. In the tech space, even though fund managers were optimistic about TCS and Tech Mahindra, Infosys got sold by several mutual funds. Another heavily sold stock during September was FMCG major Hindustan Unilever with up to 7.1 million shares worth Rs.1474 crore getting sold.
What are the most traded stocks by mutual funds in September 2020?
The topmost traded stocks by mutual funds in September are as follows -
SBI MF - Ironically SBI MF with an AUM (asset under management) over Rs.425000 cr sold around 42 million shares of its parent SBI recently. The other stocks it sold in September included 29 million shares of BHEL, 15 million shares of ZEE and 14 million shares of Bharti Infratel. These last two stocks also got removed from the benchmark indices. Among the stocks bought by SBI MF, NHPC led the way with close to 1.5 crore shares. The others bought in smaller quantities included Chola Investments, Bharti Airtel, NTPC, CUB, ONGC, Bharat Force, Avenue Supermarts and Triveni Turbines. It also built new positions in select stocks like Bata India, Hexaware, Redington and Zydus.Among the IPO segment, SBI bought positions in Route Mobile, Happiest Minds and CAMS in September 2020.
HDFC MF - After SBI MF, HDFC MF was one of the most active in the market in September 2020. It added Bharti Airtel, HCL Technologies, TCS, HDFC Bank, and Bosch to its existing portfolio. During its portfolio shifts, it indicated a preference for IT over financials by being a big seller in counters like ICICI Bank, SBI cards and buying tech stocks like HCL Tech worth Rs.243 crore as well as infusing Rs.126 crore into TCS.
ICICI Pru MF - ICICI Prudential Mutual Fund which is the third-largest fund by AUM also added TCS to its portfolio in September. It also increased its positions in Bharti Airtel, HDFC, ITC, Zydus Wellness and added close to Rs.300 crore into TCS alone.
Aditya Birla Sun Life MF - Aditya Birla Sun Life Mutual Fund bought shares worth Rs.245 crore of Mindtree, Rs.175 crore of Tech Mahindra and Rs.149 crore of TCS in September 2020. It also showed an intensive selling streak in banking stocks and heavily sold counters like ICICI Bank, Axis Bank, Kotak Bank and HDFC Bank. In fact, ICICI Bank and HDFC Bank were on a sell list of most funds last month.
Axis MF - Similar to Aditya Birla MF, Axis MF piled up on IT stocks with Wipro and TCS being among its big purchases in September. It bought TCS worth Rs.293 crore and Wipro worth Rs.253 crore. Axis MF also added stocks of Essel Propack and PI Industries to its portfolio. One another notable stock added by Axis MF was Dr Reddy’s Labs which is conducting Phase-3 trials for the Russian Sputnik vaccine.
SBI MF - Ironically SBI MF with an AUM (asset under management) over Rs.425000 cr sold around 42 million shares of its parent SBI recently. The other stocks it sold in September included 29 million shares of BHEL, 15 million shares of ZEE and 14 million shares of Bharti Infratel. These last two stocks also got removed from the benchmark indices. Among the stocks bought by SBI MF, NHPC led the way with close to 1.5 crore shares. The others bought in smaller quantities included Chola Investments, Bharti Airtel, NTPC, CUB, ONGC, Bharat Force, Avenue Supermarts and Triveni Turbines. It also built new positions in select stocks like Bata India, Hexaware, Redington and Zydus.Among the IPO segment, SBI bought positions in Route Mobile, Happiest Minds and CAMS in September 2020.
HDFC MF - After SBI MF, HDFC MF was one of the most active in the market in September 2020. It added Bharti Airtel, HCL Technologies, TCS, HDFC Bank, and Bosch to its existing portfolio. During its portfolio shifts, it indicated a preference for IT over financials by being a big seller in counters like ICICI Bank, SBI cards and buying tech stocks like HCL Tech worth Rs.243 crore as well as infusing Rs.126 crore into TCS.
ICICI Pru MF - ICICI Prudential Mutual Fund which is the third-largest fund by AUM also added TCS to its portfolio in September. It also increased its positions in Bharti Airtel, HDFC, ITC, Zydus Wellness and added close to Rs.300 crore into TCS alone.
Aditya Birla Sun Life MF - Aditya Birla Sun Life Mutual Fund bought shares worth Rs.245 crore of Mindtree, Rs.175 crore of Tech Mahindra and Rs.149 crore of TCS in September 2020. It also showed an intensive selling streak in banking stocks and heavily sold counters like ICICI Bank, Axis Bank, Kotak Bank and HDFC Bank. In fact, ICICI Bank and HDFC Bank were on a sell list of most funds last month.
Axis MF - Similar to Aditya Birla MF, Axis MF piled up on IT stocks with Wipro and TCS being among its big purchases in September. It bought TCS worth Rs.293 crore and Wipro worth Rs.253 crore. Axis MF also added stocks of Essel Propack and PI Industries to its portfolio. One another notable stock added by Axis MF was Dr Reddy’s Labs which is conducting Phase-3 trials for the Russian Sputnik vaccine.
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SEBI’s new circular -
On 11, September 2020, SEBI issued a circular mandating multi cap funds to allocate at least 25% of their portfolios to each of large, mid and small-cap by February 2021. That could have been the reason behind an outflow of Rs.734 crore witnessed by equity funds in September. According to the data by the Association of Mutual Funds in India, multi-cap scheme documented the highest outflow of Rs.1143 crore followed by large-cap funds at Rs.576 crore.
What stocks are mutual funds buying/selling 2020?
We already listed some of the most traded stocks by the popular MFs with a large AUM. Other than those mentioned above, now let us look at what stocks are mutual funds buying/selling 2020 -
Large-cap -In September, Piramal Enterprises, Bosch and Wipro remained in the top 10 buying list of MFs. Others included Godrej Consumer Products, Tech Mahindra and Adani Green Energy. The highest selling got witnessed by Bharti Infratel, HDFC AMC, Punjab National Bank, SBI Cards and Payment Services as well as MRF.
Mid-cap - Among mid-caps, Zydus Wellness, Mindtree, Tata Communications, L&T Technology Services and IIFL Wealth Management saw the highest-selling by MFs in September. Vodafone Idea, JSW Energy, Shriram Transport Finance Company, BHEL and Jubilant Life Sciences experienced most mutual funds buying stocks.
Small-cap - In this space, the highest buying by AUMs was Shilpa Medicare, Essel Propack, GMM Pfaudler, Valiant Organics and BSE Limited. On the other hand, Future Lifestyle Fashions, IndiaMART InterMESH, Aarti Drugs, Mahindra CIE Automotive and Laurus Labs witnessed the highest selling.
Large-cap -In September, Piramal Enterprises, Bosch and Wipro remained in the top 10 buying list of MFs. Others included Godrej Consumer Products, Tech Mahindra and Adani Green Energy. The highest selling got witnessed by Bharti Infratel, HDFC AMC, Punjab National Bank, SBI Cards and Payment Services as well as MRF.
Mid-cap - Among mid-caps, Zydus Wellness, Mindtree, Tata Communications, L&T Technology Services and IIFL Wealth Management saw the highest-selling by MFs in September. Vodafone Idea, JSW Energy, Shriram Transport Finance Company, BHEL and Jubilant Life Sciences experienced most mutual funds buying stocks.
Small-cap - In this space, the highest buying by AUMs was Shilpa Medicare, Essel Propack, GMM Pfaudler, Valiant Organics and BSE Limited. On the other hand, Future Lifestyle Fashions, IndiaMART InterMESH, Aarti Drugs, Mahindra CIE Automotive and Laurus Labs witnessed the highest selling.
Conclusion -
Interest in equity mutual fund schemes saw an increased revival in September with mobilisation into open-ended equity schemes being the highest in this month for the current financial year. Both the number of folios in the industry and those of equity funds experienced a significant increase. The SIP inflows also remained strong in this month at Rs.7788 crore despite past months outflow in MFs.
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