Mutual Fund update: AMCs not banking on bank stocks

Mutual fund activity in the month of April shows that the mutual funds are shying away from the banking stocks. The trend is visible in both large-cap and mid-cap banking stocks. Among the large-cap banking stocks, Bandhan Bank and IndusInd Bank saw the largest selling by AMCs at a consolidated level. Even among the mid-cap banking name, RBL Bank saw the highest-selling by mutual fund houses whereas, among small-cap, Karnataka Bank saw the highest selling. The sector that clearly remained favourite among AMCs was the pharmaceutical sector.

In the large-cap space, the pharmaceutical company where the highest buying was witnessed was Aurobindo Pharma. Meanwhile, in the mid-cap space, Alembic Pharmaceuticals saw the highest buying. Among the small-cap, companies such as Metropolis Healthcare and Aster DM Healthcare remained in the top ten buying list of AMCs.

If we look AMCs wise, it is UTI that seems to be the most bullish on pharmaceutical companies. Among its top ten buys, pharmaceutical companies such as Aurobindo Pharma, Biocon, Metropolis Healthcare and Abbott India were the four companies that have found a place in its buying list.

Overall, the inflows into equity funds declined sharply to Rs 6,100 crore in the month of April from Rs 11,723 crore in the month of March 2020. SIP inflows too saw some moderation, however, remained above Rs 8,000 crore for the month of April.