Home >Money >Personal-finance >Mutual funds lock in gains in HDFC Bank, Kotak Mahindra Bank

Mumbai: Mutual funds in June locked in gains in largecap stocks that had been leading gains for them since the start of the year to May, and stocked up underperforming stocks in the financial sector such as lenders State Bank of India and Axis Bank. Even as foreign institutional investors (FIIs) sold a net of $377 million in June, domestic institutional investors (DIIs) held fort and invested a net of 14,146 crore in the month, with Sensex eking out a mere 0.23% gain.

“The star performers may have been offloaded due to high premium," said Dhirendra Kumar, chief executive of mutual fund analytics firm Value Research.

In equity funds, mutual funds offloaded top private lender by market capitalization HDFC Bank Ltd the most, data form Value Research showed. They collectively sold Rs. 905.44 crore worth of the stock in June.

Shares of HDFC Bank were followed by those of peer Kotak Mahindra Bank Ltd, utility vehicle maker Mahindra & Mahindra Ltd, and non-banking finance company Bajaj Finance Ltd. These stocks had risen 14%, 32.49%, 23% and 20% respectively since the start of the year till end of May.

In their equity funds, ITC Ltd was the most bought large cap stock with Rs. 2,485.62 crore worth of stock purchased, as investors placed their bets on the consumption story.

“The weather has changed a bit. People are becoming conservative, and chasing value. In the process, certain stocks which were out favour are suddenly in vogue," Kumar added.

The third and fourth-most large-cap stocks were Axis Bank and State Bank of India. Mutual funds bought 1,267.86 crore and 1,123.77 crore worth of the stocks respectively. Since the start of the year to May, these stocks were down 2.40% and 13% respectively.

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