Domestic mutual funds demonstrated robust buying activity in May, significantly increasing their stakes in hundreds of companies across the Indian market. Data compiled by PRIME Database indicates that funds were net buyers in at least 631 companies, with the combined value of these net purchases reaching an impressive Rs 1,13,705 crore for the month.
Equity-oriented mutual funds recorded net inflows of Rs 22,908 crore in May. While substantial, this figure represents a 24 percent ease compared to the 12-month average, following two exceptionally strong months of inflows.
Top Buys Dominated by Banking and Energy Giants
The top five mutual fund acquisitions in May alone accounted for Rs 32,359.49 crore worth of inflows. These leading picks included:
- ICICI Bank
- HDFC Bank
- Reliance Industries Ltd
- Gujarat Gas Ltd
- Lenskart Solutions
Beyond the top five, several other prominent companies attracted significant investment. Bharti Airtel, Axis Bank, and Hyundai Motor India saw mutual fund buying to the tune of Rs 1,796.27 crore, Rs 1,646.59 crore, and Rs 1,571.29 crore, respectively.
Key Companies See Increased MF Stakes
A broad spectrum of companies experienced increased mutual fund interest. Among them, Adani Enterprises Ltd (AEL), YES Bank Ltd, Hindustan Aeronautics Ltd (HAL), Tata Motors Ltd, Bharat Electronics Ltd (BEL), Tata Power Ltd, and One 97 Communications Ltd (Paytm) were notable.
Specific Inflows Highlight Investor Confidence
Individual stock analysis reveals specific buying patterns:
- Adani Enterprises Ltd (AEL): Attracted approximately Rs 2,179 crore in inflows.
- Hindustan Aeronautics Ltd (HAL) & YES Bank Ltd: Both saw buying in the Rs 946-973 crore range.
- One 97 Communications Ltd (Paytm): Registered Rs 841.19 crore worth of mutual fund buying.
- IndusInd Bank, Tata Power, & Bharat Electronics Ltd (BEL): These firms saw institutional buying in the Rs 200-250 crore range.
Other significant buys included Billionaires Garage Ventures Ltd (Groww) with Rs 2,841 crore, JSW Energy Ltd with Rs 2,291 crore, HDFC Life Insurance Co Ltd with Rs 2,240.06 crore, Eternal Ltd with Rs 2,082 crore, and TVS Motor Co Ltd with Rs 2,010 crore.
The sustained buying activity from domestic mutual funds underscores a continued confidence in the Indian equity market, even as overall inflows saw a slight moderation from previous highs.