
In March 2025, equity inflows of mutual funds were slightly slower than in February, but fund houses were seen actively investing in the stock market. There was special focus on financials, consumer and capital goods sectors.
In which sector were the funds interested? Banking sector saw the most buying. After that, investments increased in auto, capital goods, utilities, telecom, healthcare, PSU banks and insurance sectors.
In March, the top 20 mutual funds invested a total of ₹23,500 crore. Top buys: Jio Financial Services – 6.1 crore shares increased (18% increase) Investment value: ₹9,150 crore worth of purchase Tata Consumer Products – 1.03 crore shares increased (12.8%) Investment value: ₹9,080 crore Zomato (Eternal) – 16.5 crore shares increased (10.2%) Investment value: ₹36,090 crore+ worth of purchase Top sells: Hindalco Industries – 6.3% stake reduced Kotak Mahindra Bank – 5.3% stake reduced JSW Steel – 4.5% stake reduced What was the trend in Nifty Midcap 100? Yes Bank is among the most bought companies. Share has increased by 47.9%. HUDCO – 55.6% Patanjali Foods – 21.9% IDFC First Bank – 22.7% Hindustan Zinc – 18.7% Most sold shares:- Adani Total Gas – 52.2% share has decreased. India Renewables – 23.2% Ola Electric – 14.7% Godrej Properties – 12.5% decrease. Where was the enthusiasm seen in smallcaps? Top buys:- IIFL Finance – 36.7% increase (₹460 Cr value), Welspun Living – 21.5% jump in share, Castrol India – 13.5% increase (₹400 Cr value), HFCL – 12.4% (₹1,250 Cr value), International Gemmological Institute – 10.2% (₹570 Cr value). Top Sellers: CAMS Services – 10% drop in stake Aadhar Housing Finance – 9.3% drop Funds also reduced stake in CDSL, PG Electroplast and Inventurus Overall – In March 2025, mutual funds increased exposure to sectors such as banking, consumer and capital goods, while distancing themselves from some old favourites such as Hindalco and Kotak Bank. Tremendous activity was also seen in the smallcap and midcap space, which is an important signal for retail investors.
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