Mutual Funds in March: Jio Financial, Zomato, Hindalco, Kotak Bank Under Spotlight

In March, mutual funds remained active participants in the stock market despite a dip in overall equity flows compared to the previous month. Their focus stayed sharp on key sectors like financials, consumer goods, and capital goods, with diversified investments across large, mid, and small-cap companies.

As per the latest Fund Folio report by Motilal Oswal, mutual funds were net buyers in more than half of the Nifty 50 and Nifty Midcap 100 stocks and a notable 71% of the Nifty Smallcap 100 companies. This shows a strong appetite for equity exposure, especially in the broader market.

Among the Nifty 50 stocks, Jio Financial Services saw the largest increase in mutual fund holdings, with an 18% jump as funds added 6.1 crore shares. Tata Consumer Products followed closely, with holdings rising 12.8%. Zomato also attracted attention, with a 10.2% surge in mutual fund stake.

On the flip side, Hindalco Industries topped the list for selling activity, with mutual funds cutting their stake by 6.3%. Kotak Mahindra Bank and JSW Steel also saw selling pressure.

In the midcap space, the highest buying activity was seen in Yes Bank, HUDCO, Patanjali Foods, and IDFC First Bank. Patanjali Foods and Hindustan Zinc recorded significant increases, pointing to growing investor interest in the consumer and metals space. Meanwhile, Adani Total Gas and India Renewables witnessed sharp exits, with mutual funds slashing holdings by over 20%.

Small caps were buzzing, too. IIFL Finance led the gains, with mutual funds increasing their stake by nearly 37%, boosting its investment value significantly. Welspun Living, Castrol India, and HFCL also saw substantial buying. HFCL now holds strong mutual fund ownership with over 15 core shares in their kitty.

However, not all small caps were in favour. CAMS Services and Aadhar Housing Finance witnessed notable reductions in mutual fund holdings. Stocks like CDSL, PG Electroplast, and Inventurus Knowledge Solutions also saw decreased interest.

Overall, mutual funds showed strong conviction in select financial, consumer, and telecom names, while booking profits in metal and energy-related stocks. March’s pattern reflects a cautious yet opportunistic strategy by fund managers, balancing risk with sectoral optimism.