Mutual Fund Trend: Infosys, REC and UPL among most sold stocks by MFs in July

Mutual Fund Report: Domestic equity mutual fund inflows continue to show resilience despite market volatility, with July inflows touching Rs 73 billion – a 9M high print. This, along with a reduction in cash levels (by Rs135bn MoM), indicates meaningful buying by MFs, a report by Sunil Tirumalai, Head of Research and Strategist, Emkay Global Financial Services. FIIs, however, were marginal net sellers (US$0.4bn) after six months of buying.

Mutual Funds reversed some of their selling of the previous months, buying into the oil and gas sector (largely RIL), in addition to banks and commodities. The trimming of positions in defensives such as IT services and consumer suggests risk-taking during the month, the research says. 

Most buying in large-caps

According to the research report by Emkay Global Financial Services, much of the buying happened in the large-caps (recall MFs had primarily taken money out of large-cap counters in the pre-budget months). 

Top stocks

IndusInd Bank, NTPC and Coal India saw the highest buying among stocks. REC, Infosys and UPL were the most sold by Mutual Funds during July 2019. 

For the FIIs, the significant increase in NBFCs was notable, offset by lower weights in IT services and oil and gas. 

Emkay Global Financial Services Limited and its affiliates are a full-service, brokerage, investment banking, investment management and financing group. Emkay Global Financial Services Limited (EGFSL) along with its affiliates are participants in virtually all securities trading markets in India.