7 stocks that had cracker of a Samvat year on MF booster

NEW DELHI: Dalal Street owes a lot to the domestic mutual funds for the 16 per cent jump in the benchmark Sensex seen since last Diwali.

What turned them a big market driver amid strong outflow of foreign portfolio investment during the year was strong retail flow into equities through systematic investment plans (SIPs).

Mutual funds pumped in some Rs 96,230 crore into the equity market in the Samvat year that ends this Wednesday.

And stocks that these funds chased through the year logged solid gains.

Out of the 2,800 stocks traded on BSE, mutual funds increased stakes in 468, meaning every fifth stock on BSE gained on MF booster during Samvat 2073, data from corporate database Capitaline showed.

Samvat is the Hindu accounting year that begins on Diwali.

Fund managers raised their holding in as many as 37 stocks by between 500 and 1,300 basis points during the year, lifting their combined market value by 23 per cent, or Rs 55,670 crore, to Rs 2.96 lakh crore.

Seven of them jumped in excess of 50 per cent during the year, while 28 ended the year with up to 172 per cent gains. There are not many familiar names in this grouping; Seya Industries, Gufic BioScience, Raymond, Hindalco Industries, Tata Metaliks, Brigade Enterprises and Voltamp Transformers.



Cumulatively, domestic institutional investors have invested 3.3 times more money in domestic equities than their overseas counterparts since FY15, Dinesh Thakkar of Angel Broking said in a note.

The is a positive atmosphere for equity investment, which has been correctly identified by retail investors. This year, MF inflows will be better than last three years, Thakkar said.

OUTLOOK:

Indian markets are witnessing a structural shift in terms of financialisation of domestic savings. The same is evident through robust mutual fund inflows with recent monthly inflow into equity oriented schemes. Such has been the fund flows that the entire FII outflows in the recent times have been more than absorbed by domestic fund flows. Demonetisation acted as a catalyst channelising financial savings which coupled with diminishing returns across other asset classes is likely to keep Indian markets buoyant," Pankaj Pandey, Head of Research, at ICICI Securities said.

Anand Rathi Financial Services in an ETMarkets.com Samvat 2074 survery said that DII flows to continue even if the market corrects as they are sitting on surplus cash and also continuous flow through SIP route.