Mutual Funds raise holdings in HDFC twins in June
The month of June witnessed notable changes in the sector and stock allocation of mutual funds. Private banks (17.4%) were the top sector holding for MFs during the month, followed by technology (9.3%), NBFCs (8.9%), autos (8.2%), and capital goods (7%), according to data from Motilal Oswal Financial Services.
On a month-on-month (MoM) basis, weights of NBFCs, healthcare, automobiles, capital goods, utilities, retail, metals and insurance increased, while those of private banks, technology, consumer, oil & gas, public sector banks, and infrastructure declined.
With a 50-basis-point increase month-on-month, NBFCs’ weight stood at an all-time high of 8.9%. Capital goods’ weight rose to a 64-month high of 7% with a 10-bps increase MoM. Automobiles’ weight climbed for the third consecutive month to 8.2%, up 20 bps on a month-on-month basis.
Private banks’ weight declined for the second consecutive month to a 15-month low of 17.4%, down 70 bps MoM and a decline of 30 bps year-on-year.
In terms of value increase MoM in June, five of the top 10 stocks were from the financial domain. These included HDFC (Rs 93.3 billion), HDFC AMC (Rs 28.2 billion), Axis Bank (Rs 24.2 billion), Shriram Finance (Rs 23.9 billion), and HDFC Bank (Rs 22.8 billion). Other stocks that saw a sizeable increase in value include L&T (Rs 53.6 billion), Reliance Industries (Rs 36.5 billion) and NTPC (Rs 26.6 billion).
The cut-off day for shareholders to become eligible to get shares of HDFC Bank for every share of HDFC held was July 13. HDFC Bank was to issue and allot to eligible shareholders 42 new equity shares of the face value of Re 1 each, credited as fully paid-up, for every 25 equity shares of the face value of Rs 2 each fully paid-up held by such
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