Equity mutual funds have increased their exposure to private banks, according to a Motilal Oswal report.
Private Banks’ weight – after hitting a 29-month low in Sep’20 to 15.8% – saw a positive interest among MFs and was up 160 basis points, month-on-month to 17.4%.
“On an MoM basis, the weights of Private Banks, Technology, Cement, NBFCs, and Telecom increased, while the weights of Oil & Gas, Consumer, Healthcare, Automobile, Capital Goods, Metals, Chemicals, and Media moderated.
AUM reached new highs of Rs 28.2 trillion (4.4x in 10 years) Private Banks’ weight – after hitting a 29-month low in Sep’20 to 15.8% – saw a positive interest among MFs and was up 160bp MoM to 17.4%,” Motilal Oswal has said in its report.
According to the firm, technology’s continue to scale new high as the weight increased 20bp MoM to 11.8%.
“Consumer’s weight moderated for the fifth consecutive month to reach 8.3% (-40bp MoM). As a result, the sector slipped to the fifth position in MF allocation, making way for the Healthcare sector in the fourth position. In terms of MoM value increase, the Top-5 stocks were from Private Financials – ICICI Bank (+INR57b), HDFC Bank (+INR53.9b), Kotak Mah Bank (+INR51.5b), Axis Bank (+INR31.3b), and HDFC (+INR21.4b). Stocks exhibited maximum decline in value MoM: Reliance Inds (-INR59.7b), ITC (-INR17.5b), Vedanta (-INR13.7b), HUL (-INR12.5b), and Hero MotoCorp (-INR7.9b),” the broking firm stated.