MFs shunned these 10 mid, smallcap stocks for 3 months in a row; what should investors do?
smallcap stocks have been the flavour of the season for Dalal Street investors, giving superlative returns.
However, the sharp rally has prompted mutual funds to book profits in some of them.
The monthly MF holdings data showed that the domestic institutions have reduced exposure to 10 such mid- and smallcap stocks for three consecutive months.
Of the 10 stocks, nine of them have given double-digit returns of up to 43% so far in the current financial year, while one has turned multibagger.
Mazagon Dock Shipbuilders, Bank of India, Thermax, Uno Minda, and Vedant Fashions are the five midcap stocks which saw mutual funds reducing their exposure for three months in a row, according to the data shared by Nuvama Institutional Equities.
The five smallcap stocks that saw selling by MFs for three consecutive months were Galaxy Surfactants, Ingersoll Rand, BEML, Home First Finance, and MTAR Technologies.
Mazagon Dock Shipbuilders/BEML
These two defence sector superstars have given whopping returns to investors so far in FY24.
Taking note of such a sharp rally, mutual funds have been steadily booking profits in the counter.
As of September 30, MFs held a 0.35% stake in Mazagon Dock compared to 0.44% a quarter ago. The selling continued in October also, with Aditya Birla Sun Life PSU Equity Fund being the highest seller of 29,814 shares, according to Trendlyne.
In BEML, MFs have been steadily reducing their exposure in the last four quarters.
