June was a month of wild swings for the market. After the Nifty surpassed the 12,000-mark to hit a record high at the beginning of the month, the election outcome-driven euphoria fizzled out. Despite the volatility, investors continued to park money in mutual funds, with inflows remaining steady and the contribution of systematic investment plans (SIPs) remaining stable at Rs 8,120 crore in June 2019.

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Domestic mutual fund (MF) industry’s average asset under management (AUM) increased for the second consecutive quarter in Q1FY20, up 4.2 percent QoQ, to touch a new high of Rs 25.6 lakh crore. In June 2019, average AUM increased 9 percent YoY primarily on account of inflows in equity and ETFs.

The month saw a notable change in the sector and stock allocation of funds. On a month-on-month basis, the weight of private banks, consumer, utilities, technology, NBFCs, retail, metals and PSU Banks increased, while that of oil and gas, chemicals, autos, and cement stocks decreased.

Six of the top 10 stocks, in terms of value increase, were from the financial sector. These included ICICI Bank, HDFC Bank, Shriram Transport Finance, SBI, Bajaj Finance, and HDFC.

Source: Motilal Oswal

ICICI Bank saw the largest value change in June, worth Rs 1,940 crore. Meanwhile, HDFC Bank, Shriram Transport Finance, SBI, Bajaj Finance, and HDFC added between Rs 790 crore-Rs 1,320 crore.

Other stocks that witnessed an increase in value were TCS, NTPC, Emami, and Vedanta.

NTPC saw a value increase of Rs 1,260 crore in June 2019. Notably, the stock saw net buying by 16 of the top-20 funds.

In terms of value decrease MoM, five of the top 10 stocks were from oil & gas. Stocks that saw a maximum decline in value were Reliance Industries, GAIL, Yes Bank, HPCL and UPL.

On a sectoral basis, private Banks – the top sector holding of MFs – saw their weightage increase for the ninth successive month to a new high of 19.9 percent. Private banks were followed by NBFC sector (9.2 percent), technology (8.7 percent) and capital goods (8 percent).

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First Published:Jul 16, 2019 11:48 AM IST