India's domestic mutual funds bought shares like Suzlon Ltd., and Vodafone Idea Ltd. in May while choosing to book profits in most PSUs barring State Bank of India (SBI) and HUDCO ahead of the Lok Sabha election results, that were announced on June 4.
Shares of Suzlon have been in focus on the back of multiple orders that the company has won in the last two to three weeks. It was also in focus after its independent director quit recently.
Vodafone Idea, too, has been a stock in the spotlight in the last few months after completing India's largest ever Follow-on Public Offer (FPO) through which it raised ₹18,000 crore, after raising over ₹2,000 crore from a promoter entity and thereby completing its ₹20,000 crore equity fundraise. It has also garnered investor interest amidst reports that it can be a potential MSCI inclusion during its next review in August.
Also Read: Suzlon Dividend in May 2025? Here's what the management said
Along with Suzlon and Vodafone Idea, mutual funds also increased their exposure in stocks like Oracle Financial, which trades at a record high after its parent Oracle Corp. reported strong results earlier this week. Persistent Systems is the other stock where funds increased their exposure. A notable addition within the midcap space is Star Health Insurance, which has been an underperformer compared to its insurance peers and continues to trade below its IPO price.
Conversely, fund houses reduced their exposure to midcap stocks like Thermax, Coforge, Solar Industries, Sundaram Finance, and Indus Towers.
For May, most fund houses chose to book profits in state-run companies ranging from Hindustan Aeronautics, BEL, BEML and others ahead of the Lok Sabha election results declaration. It needs to be clarified that these fund houses have reduced their exposure to these PSUs and have not exited their positions entirely.
Since the start of the month and after the declaration of the election results, PSUs were the worst hit and some are still reeling from the losses they made on June 4. Stocks are down up to 10% from the closing of May 31.
Within the largecap space, fund houses increased their exposure to banking names like HDFC Bank, Kotak Bank and SBI within their portfolio, while cutting down on their exposure to names like Bajaj Finance.
Within the smallcap universe, fund houses invested in the IPOs of Go Digit, Aadhar Housing, TBO Tek and Indegene, while they exited their positions in stocks like GMR Urban and Ujjivan Financial. HUDCO was another PSU barring SBI, where fund houses increased their exposure.
Shares of Suzlon have been in focus on the back of multiple orders that the company has won in the last two to three weeks. It was also in focus after its independent director quit recently.
Vodafone Idea, too, has been a stock in the spotlight in the last few months after completing India's largest ever Follow-on Public Offer (FPO) through which it raised ₹18,000 crore, after raising over ₹2,000 crore from a promoter entity and thereby completing its ₹20,000 crore equity fundraise. It has also garnered investor interest amidst reports that it can be a potential MSCI inclusion during its next review in August.
Also Read: Suzlon Dividend in May 2025? Here's what the management said
Along with Suzlon and Vodafone Idea, mutual funds also increased their exposure in stocks like Oracle Financial, which trades at a record high after its parent Oracle Corp. reported strong results earlier this week. Persistent Systems is the other stock where funds increased their exposure. A notable addition within the midcap space is Star Health Insurance, which has been an underperformer compared to its insurance peers and continues to trade below its IPO price.
Conversely, fund houses reduced their exposure to midcap stocks like Thermax, Coforge, Solar Industries, Sundaram Finance, and Indus Towers.
| Mutual Fund In Midcap Stocks | |
| Addition | Reductions |
| Vodafone Idea | Thermax |
| Suzlon | Solar Industries |
| Star Health | Sundaram Finance |
| Persistent Systems | Coforge |
| Oracle Financial | Indus Towers |
Profit Booking In PSUs
For May, most fund houses chose to book profits in state-run companies ranging from Hindustan Aeronautics, BEL, BEML and others ahead of the Lok Sabha election results declaration. It needs to be clarified that these fund houses have reduced their exposure to these PSUs and have not exited their positions entirely.
Since the start of the month and after the declaration of the election results, PSUs were the worst hit and some are still reeling from the losses they made on June 4. Stocks are down up to 10% from the closing of May 31.
| PSU | Returns Till May 31, 2024 | Since June 1, 2024 |
| HAL | 78% | -1.3% |
| PNB | 35% | -1.5% |
| BEL | 61% | -1.7% |
| Bharat Dynamics | 82% | -9% |
| BEML | 55% | -10% |
| Hindustan Copper | 30% | -5.7% |
Within the largecap space, fund houses increased their exposure to banking names like HDFC Bank, Kotak Bank and SBI within their portfolio, while cutting down on their exposure to names like Bajaj Finance.
| Mutual Fund In Largecap Stocks | |
| Addition | Reductions |
| HDFC Bank | Bajaj Finance |
| Infosys | Hindustan Aeronautics |
| Kotak Mahindra Bank | PNB |
| HUL | BEL |
| SBI | ICICI Bank |
Within the smallcap universe, fund houses invested in the IPOs of Go Digit, Aadhar Housing, TBO Tek and Indegene, while they exited their positions in stocks like GMR Urban and Ujjivan Financial. HUDCO was another PSU barring SBI, where fund houses increased their exposure.
| Mutual Fund In Smallcap Stocks | ||
| Addition | Reductions | Exits |
| Aptus Value | Hindustan Copper | Share India Securities |
| HUDCO | Whirlpool | GMR Urban |
| Prudent Corp. | Bharat Dynamics | Kopran |
| BEML | Pitti Engineering | |
| Carborundum | Ujjivan Financial |
First Published: Jun 13, 2024 12:16 PM IST
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