What India’s Top Asset Managers Bought And Sold So Far In Second Half Of 2019
India’s equity mutual funds witnessed nearly Rs 30,000-crore inflow in the last four months of this calendar year even as the stock market remained volatile.
The benchmark indices tumbled after the government announced a tax surcharge on foreign investors in Union Budget 2019-20 in July. And a rollback didn’t help either. That, coupled with global trade tensions and a slowing economy, further dented sentiment. The equity indices even logged their worst quarterly decline in more than a year in the three months ended September.
But India’s surprise corporate tax cut revived the equity market as the benchmark indices hit record highs in October and November. Better-than-expected corporate earnings only added to investors’ joy. Of the 46 Nifty 50 constituents that have reported earnings so far, 16 beat estimates. Besides, foreign investors have bought stocks worth Rs 6,000 crore in the secondary markets so far in November, National Securities Depository Ltd. data showed.
That being said, concerns over deepening slowdown in India, escalation of violence in Hong Kong and trade tensions between the U.S. and China have kept investors on the edge, while capping the upside for Indian markets.
Against this backdrop, here’s what India’s top three asset managers bought and sold in the July-October period...
HDFC Mutual Fund
India’s largest asset manager has invested more than Rs 1.5 lakh crore ($21.7 billion) across 333 securities, according to Bloomberg data. Over the last four months, the fund house increased its exposure in cigarette maker ITC Ltd. and public sector companies. On the other hand, it has reduced exposure in select Nifty 50 stocks and commercial vehicle maker Ashok Leyland Ltd.
ICICI Prudential Mutual Fund
The fund house has total equity assets worth Rs 1.47 lakh crore ($20.5 billion) invested in 624 securities. Over the last four months, it has increased its exposure into financials and information technology companies. On the other hand, the fund house lowered its holding in India’s largest public sector bank the most.
SBI Mutual Fund
The fund house has equity assets of more than Rs 1.8 lakh crore ($25.6 billion) invested in 328 securities. Over the past four months, it has raised its exposure into financials and reduced its overall holding in Vodafone Idea Ltd. the most. Non-banking financial lender Mahindra & Mahindra Financial Services Ltd. and drugmaker Aurobindo Pharma Ltd. were the other key stocks where the asset manager trimmed its holding.