Funds bought shares of NTPC and IndusInd Bank to the tune of Rs 700 crore each; while in L&T, they were buyers worth Rs 650 crore during the month, said Edelweiss.
Mumbai: Mutual funds continued to trim their holdings in various blue-chip stocks in February as continued redemption pressures prompted money managers to offload liquid stocks.
Edelweiss Alternative Research said in a note that mutual funds sold Rs 2,800 crore worth of shares of Bharti Airtel, Rs 1,700 crore worth of HDFC Bank, Rs 1,500 crore worth of Reliance Industries and offloaded Rs 1,400 crore worth of HDFC shares.
Funds bought shares of NTPC and IndusInd Bank to the tune of Rs 700 crore each; while in L&T, they were buyers worth Rs 650 crore during the month, said Edelweiss. In the last few months, mutual funds are selling heavyweights because of net outflows in equity mutual fund schemes and heavyweights are easier to trim because of liquidity, said Abhilash Pagaria, senior manager, Edelweiss Alternative Research.
Synopsis
Nifty PSU Bank gained 32 per cent; good Q3 numbers, announcement of a bad bank and other measures in budget boost sentiment.
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MUMBAI: India’s financial sector mainly public sector lenders attracted $2 billion, or nearly 60 per cent, of the overseas inflows amounting to $3.5 billion that came into Indian equities in February. The month, which saw Indian equities surging over 10 per cent on the back of a pro-growth Budget saw financials surging on the back of betterthan-expected December quarter numbers and the Budget announcement of a bad bank as well as other measures for the banking sector.
“FPIs were back as net buyers in financials last month. We wouldn’t be surprised if a major chunk of inflows would have chased PSU banks,” said Sriram Velayudhan, VP, IIFL Alternative Research. Nifty Bank gained 14 per cent in February.
MSCI announced changes in weightage of stocks in the MSCI Standard Index earlier and the weight changes are effective from March 1, 2021. All rebalancing will happen in trade on Feb 26th, the last trading day.
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