Mutual Funds have bought these 13 mid-cap shares in the falling Indian market. Also sold 7 stocks.

In the month of October, mutual funds (MFs) increased their stake in 56 stocks of Nifty Midcap 100. These include major names like Suzlon Energy Limited, YES Bank Limited, Rail Vikas Nigam Limited (RVNL), One 97 Communications Limited (Paytm) and Vodafone Idea.

Which shares showed interest?

• Value Buying: MF holding in Bank of Maharashtra shares has increased by 215.80% since share prices fell 9% in October.
• Bet on falling stocks: MFs have also increased their stake in shares of IDFC First Bank (11% fall), Tata Chemicals, Aditya Birla Capital and Poonawala Fincorp.
• Investing in rising shares also: Despite Paytm shares rising by 10%, MF holding saw a rise of 16.7%. MF also bought shares in BSE with a rise of 21%.
• Interest in Railway Stock: MF holding in RVNL shares rose by 13.3%, while the share prices fell by 11%.
• Stakes in Telecom Sector: MF bought despite 22% fall in Vodafone Idea shares.

Distance from which stocks?

• SAIL: MFs sold SAIL shares with 18% fall.
• Banking Sector: MFs also sold shares of Bandhan Bank and IDFC First Bank.
• Other: MFs also reduced their stake in stocks like Petronet LNG, Torrent Power, Exide Industries, Voltas, Tata Elxee, Kalyan Jewelers India and Indus Towers.

Expert opinion:

According to Ashish Gupta, CIO, Axis Mutual Fund, the supply of equity through IPOs and stake sales since FY24 has been 1.5 times the net inflows into mutual funds. FII inflows have been more than $35 billion in the last 18 months (April 2023 to September 2024), which has supported the market.