Mutual funds buy RIL, HDFC Bank and L&T on recovery hopes

India’s top five mutual fund houses — HDFC AMC, ICICI Pru, Reliance MF, Birla Sun Life AMC and UTI AMC, which together hold about 55% market share in the mutual fund industry — have bought shares of Reliance Industries ( RIL) in June on hopes of strong earnings over the coming quarters. The fund houses have also bought shares of HDFC Bank, Larsen & Toubro and Tata Motors on expectations of a cyclical recovery in the economy. The fund managers have deployed over Rs 10,000 crore in the past month buying both value and growth stocks. However, most of the funds remained minor sellers in some stocks from the banking and pharma spaces.