Mutual Funds net flow in January 2023 jumps 70% on a month-on-month basis; Auto sector sees maximum traction

The asset management companies' (AMCs) or Mutual Funds' (MF) equity net flows grew by more than 70 per cent in January 2023 at Rs 12,470 crore as compared to Rs 7,280 crore in December 2022.

Amid improved demand and a healthy outlook, the Auto & Ancillary sector witnessed maximum traction from MF houses. The total weightage of the auto segment grew by 51 basis points (bps) to 8.4 per cent, followed by IT which was up 41 bps to 10.1 per cent in January.

On the contrary, MFs reduced their weightage in financials most by 68 bps month-on-month (MoM) to 32.1 per cent in January 2023. They also trimmed holdings in Discretionary by 26 bps Mom to 6.9 per cent in the previous month.

Top 5 stocks ‘bought’ by MFs:

Large Caps – Samvardhana Motherson, ICICI Bank, NTPC, Zomato, FSN E-Commerce Ventures.

Midcap Caps – Motherson Sumi Wiring, Ashok Leyland, SAIL, PNB, Indian Hotels.

Small Caps – South Indian Bank, Kalpataru Power Transmission, EPL, Hindustan Copper, NLC India.

Top 5 stocks ‘sold’ by MFs:

Large Caps – HCL Tech, BEL, Coal India, Tata Power, Ambuja Cements.

Midcap Caps – Vodafone Idea, IDFC First Bank, REC, Federal Bank, IRFC.

Small Caps – JMC Projects, NALCO, Shree Renuka Sugars, Heritage Foods, Indiabulls Housing Finance.

Sector-wise changes in stock holdings (MoM)

Higher exposure: Auto & Ancillary (+51 bps), IT (+41 bps), Staples (+20 bps) and Metals & Mining (+8 bps).

Stock-wise details:

Auto & Ancillary: Samvardhana Motherson, Motherson Sumi Wiring, Ashok Leyland, Tata Motors, Apollo Tyres.

IT: Infosys, Wipro, TCS, Birlasoft, Firstsource Solutions.

Staples: ITC, HUL, Dabur, Balrampur Chini Mills, GCPL.

Metals & Mining: SAIL, Tata Steel, NMDC, Hindustan Copper, Rama Steel Tubes.

Lower Exposure: Financials (-68 bps), Discretionary (-26 bps), Building Materials (-14 bps) and Agriculture and Chemicals (-13 bps).

Stock-wise details:

Financials: IDFC First Bank, REC, Federal Bank, IRFC, Max Financial Services.

Discretionary: Sterlite Technologies, Orient Paper, Kansai Nerolac Paints, Bata, Campus Activewear.

Building Materials: Ambuja Cements, Indiabulls Real Estate, Sobha, UltraTech Cement, Sunteck Realty.

Agriculture & Chemicals: UPL, Godrej Industries, Chambal Fertilisers, GHCL, Rossari Biotech.