Mutual funds sold RIL shares in July; SBI, HDFC, ICICI, other funds bought these stocks instead

Analysts believe July was largely a month when investors booked profits as the stock markets have recouped most of the losses incurred in March.

The Mutual Fund industry saw outflows from the equity funds for the first time in four years as investors pulled out Rs 2,480 crore. Analysts believe it was largely a month when investors booked profits as the stock markets have recouped most of the losses incurred in March. Amid such trends, some of the biggest asset management companies in India either sold some part of their top holdings or opted for the status quo. Interestingly almost all the top mutual fund houses trimmed their stakes in Mukesh Ambani’s Reliance Industries Ltd after it soared to touch record highs, according to data sourced by ICICI Direct. Here’s what stocks were bought and sold.

SBI Mutual Fund’s top buy was PVR Ltd, a company that belongs to one of the worst hit sectors in the time of the pandemic. SBI AMC had 0.03 lakh shares of the PVR at the end of June, by the end of last month the number of shares was at 7 lakh with a market value of Rs 78 crore. Other major stocks that SBI mutual fund bought in July included, City Union Bank, Supreme Industries, and HDFC Life Insurance. The fund house has RIL as one of its biggest holdings, and in July SBI mutual fund booked profits in RIL trimming its holding by 4%. Infosys was the only stock among its largest bets where SBI AMC increased its holding.

For HDFC mutual fund, Yes Bank was the biggest buy in July, probably through the follow-on public offer of the private sector lender. HDFC AMC now holds 1,639 lakh shares of the lender. ACC, Muthoot Finance, Wipro, and Tech Mahindra were the other top buys of HDFC mutual fund. The fund house cut its holding in RIL by a massive 23% and sold brought down its holding of HDFC Bank by 5%. HDFC AMC too bought Infosys shares in the month of July. 

Pharma and healthcare was the trend that ICICI Prudential followed in the month of July. It was seen buying stocks of Metropolis Healthcare, Alkem Laboratories, Divis Laboratories, and Torrent Pharma in the previous month. From its top holdings, ICICI Prudential went on to sell Axis Bank the most, followed by Reliance Industries. The fund house did not mirror the move made by HDFC AMC and SBI mutual fund as it sold 9% of its holdings in Infosys, 

Interestingly, Aditya Birla Sunlife Mutual Fund was seen picking up stocks of HDFC AMC in July, taking the value of its holding in the fund house to Rs 70 crore from Rs 1 crore in June. Motherson Sumi, UPL, PI Industries, and IGL were the other top picks of Aditya Birla Sunlife. 15% if the stake that it had in Reliance Industries was sold during the month of July, while it bought Infosys. Losing confidence in banks and financials, Aditya Birla Sunlife sold ICICI Bank stocks, Kotak Mahindra Bank, HDFC, and Axis Bank. However, it did increase holding in HDFC Bank.

AMCs bought Piramal Enterprises, UPL, JSW Steel and even SBI Cards among large cap stocks while they sold Bharti Infratel, Eicher, DLF,  and soon to be delisted Vedanta. Yes Bank was the biggest midcap stock buy from AMC, as value of holding among fund houses increased to Rs 211 crore from just Rs 1 crore in June. Vodafone Idea was the most sold stock among midcaps.