{"id":5387,"date":"2025-03-17T16:21:11","date_gmt":"2025-03-17T10:51:11","guid":{"rendered":"https:\/\/trending.niftytrader.in\/?p=5387"},"modified":"2025-03-17T16:21:11","modified_gmt":"2025-03-17T10:51:11","slug":"mutual-funds-boost-holdings-in-private-banks-nbfcs","status":"publish","type":"post","link":"https:\/\/www.niftytrader.in\/markets\/mutual-funds-boost-holdings-in-private-banks-nbfcs\/","title":{"rendered":"Mutual Funds Boost Holdings in Private Banks, NBFCs, Healthcare &#038; Telecom in Feb"},"content":{"rendered":"<h2 data-start=\"101\" data-end=\"175\">MFs Reduce Stake in PSU Banks, Capital Goods, Auto, and Oil &amp; Gas<\/h2>\n<p data-start=\"177\" data-end=\"479\">Mutual funds (MFs) reallocated their portfolios in February 2025, increasing exposure to private banks, non-banking financial companies (NBFCs), healthcare, telecom, and metals, while reducing their stake in capital goods, technology, automobiles, oil &amp; gas, PSU banks, utilities, and retail.<\/p>\n<p data-start=\"481\" data-end=\"705\">This shift in allocation came during a month when the benchmark Nifty 50 index lost nearly 6%, reflecting cautious investment behavior amid market volatility, according to a Motilal Oswal Financial Services report.<\/p>\n<h2 data-start=\"707\" data-end=\"731\">Highlights:<\/h2>\n<ul data-start=\"732\" data-end=\"1294\">\n<li data-start=\"732\" data-end=\"840\">Private banks continued to hold the highest sector weightage at 18.5% in mutual fund portfolios.<\/li>\n<li data-start=\"841\" data-end=\"956\">Technology sector weightage declined to 9.3%, a drop of 30 basis points (bps) month-on-month (MoM).<\/li>\n<li data-start=\"957\" data-end=\"1030\">Auto sector allocation fell to 8.1%, its lowest in 19 months.<\/li>\n<li data-start=\"1031\" data-end=\"1128\">Capital goods weightage dropped 60 bps MoM and 90 bps year-on-year (YoY) to 6.8%.<\/li>\n<li data-start=\"1129\" data-end=\"1192\">Mutual funds were net buyers in 70% of Nifty 50 stocks.<\/li>\n<li data-start=\"1193\" data-end=\"1294\">Among midcap and smallcap stocks, MFs were net buyers in 58% and 67% of stocks, respectively.<\/li>\n<\/ul>\n<h2 data-start=\"1296\" data-end=\"1341\">Mutual Fund Sector Allocation Trends<\/h2>\n<h3 data-start=\"1343\" data-end=\"1393\">Top Sectors with Increased MF Investment<\/h3>\n<p data-start=\"1394\" data-end=\"1467\">Mutual funds increased their exposure in the following key sectors:<\/p>\n<ul data-start=\"1468\" data-end=\"1604\">\n<li data-start=\"1468\" data-end=\"1533\">Private banks (18.5% sector weightage, highest among all)<\/li>\n<li data-start=\"1534\" data-end=\"1559\">Healthcare (7.6%)<\/li>\n<li data-start=\"1560\" data-end=\"1573\">NBFCs<\/li>\n<li data-start=\"1574\" data-end=\"1589\">Telecom<\/li>\n<li data-start=\"1590\" data-end=\"1604\">Metals<\/li>\n<\/ul>\n<p data-start=\"1606\" data-end=\"1674\">Among Nifty 50 stocks, the top MoM net buying trends included:<\/p>\n<ul data-start=\"1675\" data-end=\"1824\">\n<li data-start=\"1675\" data-end=\"1713\">Dr Reddy\u2019s Laboratories (+12%)<\/li>\n<li data-start=\"1714\" data-end=\"1745\">Apollo Hospitals (+11%)<\/li>\n<li data-start=\"1746\" data-end=\"1776\">Ultratech Cement (+8%)<\/li>\n<li data-start=\"1777\" data-end=\"1824\">Tata Consultancy Services (TCS) (+7.1%)<\/li>\n<\/ul>\n<p data-start=\"1826\" data-end=\"1895\">Among Nifty Midcap 100 stocks, mutual funds were net buyers in:<\/p>\n<ul data-start=\"1896\" data-end=\"2012\">\n<li data-start=\"1896\" data-end=\"1912\">Yes Bank<\/li>\n<li data-start=\"1913\" data-end=\"1936\">IDFC First Bank<\/li>\n<li data-start=\"1937\" data-end=\"1961\">Prestige Estates<\/li>\n<li data-start=\"1962\" data-end=\"1982\">Bandhan Bank<\/li>\n<li data-start=\"1983\" data-end=\"2012\">AU Small Finance Bank<\/li>\n<\/ul>\n<p data-start=\"2014\" data-end=\"2076\">Among Nifty Smallcap 100 stocks, MFs were net buyers in:<\/p>\n<ul data-start=\"2077\" data-end=\"2206\">\n<li data-start=\"2077\" data-end=\"2099\">Happiest Minds<\/li>\n<li data-start=\"2100\" data-end=\"2124\">Signature Global<\/li>\n<li data-start=\"2125\" data-end=\"2152\">Action Construction<\/li>\n<li data-start=\"2153\" data-end=\"2173\">IIFL Finance<\/li>\n<li data-start=\"2174\" data-end=\"2206\">Glenmark Pharmaceuticals<\/li>\n<\/ul>\n<h3 data-start=\"2208\" data-end=\"2261\">Sectors Where Mutual Fund Holdings Declined<\/h3>\n<p data-start=\"2262\" data-end=\"2367\">Mutual funds trimmed their stake in several key sectors, reflecting a shift in investment strategy:<\/p>\n<ul data-start=\"2368\" data-end=\"2732\">\n<li data-start=\"2368\" data-end=\"2444\">Technology stocks fell to 9.3% weightage (-30 bps MoM, -20 bps YoY).<\/li>\n<li data-start=\"2445\" data-end=\"2554\">Automobile sector allocation dropped to 8.1%, the lowest in 19 months (-30 bps MoM, -10 bps YoY).<\/li>\n<li data-start=\"2555\" data-end=\"2627\">Capital goods weightage fell to 6.8% (-60 bps MoM, -90 bps YoY).<\/li>\n<li data-start=\"2628\" data-end=\"2732\">PSU banks, oil &amp; gas, consumer, utilities, and retail sectors also saw a decline in MF holdings.<\/li>\n<\/ul>\n<h3 data-start=\"2734\" data-end=\"2774\">MF Ownership vs. BSE 200 Index<\/h3>\n<p data-start=\"2775\" data-end=\"2896\">The report highlighted sectors where mutual funds were underweight or overweight compared to the BSE 200 index:<\/p>\n<ul data-start=\"2898\" data-end=\"3424\">\n<li data-start=\"2898\" data-end=\"3160\">\n<p data-start=\"2900\" data-end=\"2961\">Under-owned sectors (MFs holding 1% lower than BSE 200)<\/p>\n<ul data-start=\"2964\" data-end=\"3160\">\n<li data-start=\"2964\" data-end=\"2999\">Consumer (17 funds under-owned)<\/li>\n<li data-start=\"3002\" data-end=\"3038\">Oil &amp; gas (17 funds under-owned)<\/li>\n<li data-start=\"3041\" data-end=\"3081\">Private banks (16 funds under-owned)<\/li>\n<li data-start=\"3084\" data-end=\"3121\">Technology (12 funds under-owned)<\/li>\n<li data-start=\"3124\" data-end=\"3160\">Utilities (12 funds under-owned)<\/li>\n<\/ul>\n<\/li>\n<li data-start=\"3162\" data-end=\"3424\">\n<p data-start=\"3164\" data-end=\"3225\">Over-owned sectors (MFs holding 1% higher than BSE 200)<\/p>\n<ul data-start=\"3228\" data-end=\"3424\">\n<li data-start=\"3228\" data-end=\"3264\">Healthcare (16 funds over-owned)<\/li>\n<li data-start=\"3267\" data-end=\"3306\">Capital goods (11 funds over-owned)<\/li>\n<li data-start=\"3309\" data-end=\"3344\">Chemicals (10 funds over-owned)<\/li>\n<li data-start=\"3347\" data-end=\"3390\">Consumer durables (10 funds over-owned)<\/li>\n<li data-start=\"3393\" data-end=\"3424\">Retail (9 funds over-owned)<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 data-start=\"3426\" data-end=\"3478\">Market Implications and Investment Strategy<\/h2>\n<h3 data-start=\"3480\" data-end=\"3536\">1. Growing Interest in Private Banks and NBFCs<\/h3>\n<p data-start=\"3537\" data-end=\"3833\">Private banks maintained the highest sector weightage (18.5%), signaling strong confidence in the banking sector, particularly private lenders. Rising credit demand and improving financial sector performance likely influenced the surge in MF exposure to private banks and NBFCs.<\/p>\n<h3 data-start=\"3835\" data-end=\"3892\">2. Healthcare Emerges as a Key Investment Theme<\/h3>\n<p data-start=\"3893\" data-end=\"4159\">Mutual funds increased their stake in healthcare stocks, making it one of the top over-owned sectors. Investments in Dr Reddy\u2019s Labs and Apollo Hospitals suggest that fund managers see strong growth potential in pharmaceuticals and hospital chains.<\/p>\n<h3 data-start=\"4161\" data-end=\"4219\">3. Shift Away from Capital Goods and Automobiles<\/h3>\n<p data-start=\"4220\" data-end=\"4441\">MFs cut their exposure to capital goods, auto stocks, and technology. Auto sector weightage hit a 19-month low, reflecting concerns over slowing demand, rising interest rates, and global supply chain issues.<\/p>\n<h3 data-start=\"4443\" data-end=\"4502\">4. Selective Buying in Midcap and Smallcap Stocks<\/h3>\n<p data-start=\"4503\" data-end=\"4706\">While mutual funds remained net buyers in the broader market, they were more selective in midcap and smallcap investments, focusing on sectors such as finance, real estate, and IT services.<\/p>\n<h3 data-start=\"4708\" data-end=\"4760\">5. Telecom and Metal Sectors Gain Traction<\/h3>\n<p data-start=\"4761\" data-end=\"4910\">The increased allocation in telecom and metals suggests optimism around 5G expansion, infrastructure spending, and global commodity demand.<\/p>\n<p data-start=\"4912\" data-end=\"5148\" data-is-last-node=\"\" data-is-only-node=\"\">As mutual funds rebalance their portfolios, sectoral trends indicate a cautious yet selective approach, with a focus on private banks, healthcare, and NBFCs, while reducing exposure to capital goods, auto, and PSU banks.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>MFs Reduce Stake in PSU Banks, Capital Goods, Auto, and Oil &amp; Gas Mutual funds (MFs) reallocated their portfolios in February 2025, increasing exposure to private banks, non-banking financial companies (NBFCs), healthcare, telecom, and metals, while reducing their stake in capital goods, technology, automobiles, oil &amp; gas, PSU banks, utilities, and retail. This shift in [&hellip;]<\/p>\n","protected":false},"author":4,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[615],"tags":[],"ppma_author":[1331],"class_list":{"0":"post-5387","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-stock-market-news"}," _eael_post_view_count":0,"authors":[{"term_id":1331,"user_id":4,"is_guest":0,"slug":"sourabh","display_name":"Sourabh Sharma","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/5387","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=5387"}],"version-history":[{"count":1,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/5387\/revisions"}],"predecessor-version":[{"id":5389,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/5387\/revisions\/5389"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/5388"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=5387"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=5387"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=5387"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=5387"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}