Mutual Fund Activity: Top Stocks Bought & Sold - August 2021

In August, the most bought stock by Mutual Funds was Chemplast Samnar while the most sold stock was that of Infosys. The numbers suggest that mutual funds devoted special attention to IPOs in August and the top 4 most bought stocks in the small-cap category were all of the companies that launched their IPOs. 

Here’s more information about what mutual funds bought and sold in the month of August.  

Large Cap

The stocks most bought in the large cap space included the two banking giants of India – ICICI Bank and HDFC Bank. 

Related news and updates for the month:  

• In August, HDFC Bank got a sign of relief when the RBI lifted the credit card ban on the bank. The ban was lifted after nearly 8 months. 
• The market cap of TCS crossed the Rs 13.5 lakh crore mark towards the last week of August. 
• Lupin reported a 5-fold jump in its consolidated net profit at Rs 542.46 crore for the quarter ended June 30, 2021.

Most Bought  Stock  Net Qty Bought (in crore)* Buy Value(In Rs. cr)* ICICI Bank 2.24 1576.5 TCS 0.40 1419.38 SBI Life Insurance Company 1.23 1410.13 HDFC Bank 0.70 1056.77 Lupin 0.79 817.49 Source: RupeeVest, *Approximate values

Note: The lists have been arranged in terms of the total buy/sell value and not in order of the number of shares sold. 

• Infosys had announced a major buyback program worth Rs 9,200 crore on June 25, 2021. The other big news for the company was the glitches observed in its income tax portal. 
• Airtel saw a setback when the Supreme Court dismissed the applications of Vi and Airtel for the recomputation of AGR dues demanded by the Department of Telecommunication (DoT).
• Tata Consumer Products Ltd (TCPL) had reported a decline of 42.05% in consolidated net profit to Rs 200.24 crore for the first quarter ended June 2021. The company had registered a higher net profit in the previous year due to a one-time exception gain derived by the conversion of a Joint Venture (NourishCo Beverages) into a subsidiary. 

Most Sold Stock  Net Qty Sold (in crore)* Sale Value(In Rs. cr)* Infosys 1.63 2716.78 Tech Mahindra 0.96 1271.94 Bharti Airtel 1.61 987.38 Tata Steel 0.54 773.54 Tata Consumer Products 0.81 657.25 Source: RupeeVest, *Approximate values

Mid Cap

Topping the list of most bought stocks in the mid-cap category was Nuvoco Vistas Corporation. The most sold mid-cap stock by mutual funds was IRCTC. 

Related news and updates for the month: 

• Nuvoco Vistas IPO was open for subscription between 9 August – 11 August. The stock was listed on the stock markets on 23rd August at a loss of 14.91%. 
• Coforge reported a 54.7% year-on-year increase in consolidated net profit at Rs 123.6 crore in the first quarter of Financial Year 2021. 
• Minda Industries launched a Qualified Institutional Placement (QIP) to raise up to Rs 700 crores capital from institutional investors during the beginning of August. 
• Sona BLW Precision Forgings had reported a consolidated net profit of Rs 82 crore in the first quarter ended June 30. On reports that the company was in discussions with Tesla for the supply of components, the company denied the rumours. 

Most Bought  Stock  Net Qty Bought (in crore)* Buy Value(In Rs. cr)* Nuvoco Vistas Corporation 2.86 1590.34 Coforge 0.10 544.75 Minda Industries 0.65 477.74 Sona BLW Precision Forgings 0.71 333.72 LIC Housing Finance 0.66 267.16 Source: RupeeVest, *Approximate values

• IRCTC had announced a stock split with a split of one equity share of the face value of Rs 10 into five equity shares of the face value of Rs 2. 

Most Sold Stock  Net Qty Sold (in crore)* Sale Value(In Rs. cr)* IRCTC 0.15 378.13 Persistent Systems 0.10 322.14 Balkrishna Industries 0.12 273.6 ACC 0.09 216.67 Deepak Nitrite 0.09 197.4 Source: RupeeVest, *Approximate values

Small-Cap

Companies that recently launched their IPOs ruled the rankings in the Small Cap category. 

Related news and updates for the month:

• Chemplast Sanmar was open for subscription between August 10 and 12. It was listed on the stock markets at a 1.66% premium on August 24. 
• CarTrade Tech was open for subscription between August 9 and 11. It listed on the stock markets at a 1.11% loss on August 20. 
• Krsnaa Diagnostics was open for subscription between August 4 and 6. It listed on the stock markets at a 5.45% gain on August 16. 
• Rolex Rings was open for subscription between July 28 and 30. It was listed on the stock markets at a 38.89% premium on August 9. 

Most Bought  Stock  Net Qty Bought (in crore)* Buy Value(In Rs. cr)* Chemplast Sanmar 4.02 2317.31 CarTrade Tech 0.22 326.5 Krsnaa Diagnostics 0.32 303.93 Rolex Rings 0.27 267.49 Wabco India 0.03 220.71 Source: RupeeVest, *Approximate values

• Amara Raja Batteries was given notices by Andhra Pradesh Pollution Control Board to shut down its batteries manufacturing units in Chittoor. 
• Reliance Retail, the retail arm of Reliance Industries Limited, announced the acquisition of a stake of 40.95% for Rs 3,497 crore in Just Dial.

Most Sold Stock  Net Qty Sold (in crore)* Sale Value(In Rs. cr)* Amara Raja Batteries 0.35 254.04 Metropolis Healthcare 0.06 164.5 GMM Pfaudler 0.04 158.31 Just Dial 0.16 148.9 UTI AMC 0.11 128.02 Source: RupeeVest, *Approximate values

Why Does a Fund Manager Buy or Sell a Stock? 

The fund manager, in order to achieve the investment objectives of the fund, takes strategic calls of buying and selling stocks across sectors to maximise gains, based on the category the fund belongs to. 

However, it is important to note that just because a fund manager decides to buy or sell a particular stock does not mean you need to imitate the same movement for your own stocks portfolio. A mutual fund manager buying or selling a stock does not necessarily indicate it is a good or bad stock. 

The information presented above is just to update the reader with the happenings of the mutual fund industry so that you remain informed as an investor. 

It is always important to carry out your independent research when it comes to stocks and mutual funds and invests in alignment with your goals. 

How are Large-Cap, Mid-Cap and Small-Cap Companies Classified? 

They are classified on the basis of their market cap. Market capitalization is the aggregate valuation of a company based on its current share price and the total number of outstanding stocks. 

It is calculated by multiplying the number of outstanding shares and closing market price of each share of the company. 

Large Cap stocks are the top 100 companies on the stock market – i.e. the 100 companies with the highest market capitalisation. 

Then comes Mid Cap-Companies, which are ranked from 101 to 250. 

All companies that follow mid cap companies on the exchange from 251st position onwards are small cap companies. 

Hope this was insightful. 

Happy Investing! 

Disclaimer: The data presented in the tables above has been taken from RupeeVest. The data may vary from source to source. Readers are advised to carry out thorough research, refer to various sources, and invest in alignment with their goals. 

Source link: https://www.rupeevest.com/Mutual-Fund-Holdings