Rate-sensitive stocks like HDFC, Axis & IndusInd Bank on Mutual funds' radar

Top six mutual fund houses — HDFC AMC, ICICI Pru AMC, Reliance MF, Birla Sun Life AMC, UTI AMC and SBI Funds Mgmt — which together hold over 60% market share in the mutual fund industry, were seen buying interest rate-sensitive stocks in December such as HDFC Bank, Axis Bank, and IndusInd Bank and capital goods stocks like BHEL, Crompton Greaves and Alstom India on hopes of reduction in interest rates.

Mutual fund houses have sold oil & gas stocks such as ONGC and RIL on falling crude oil prices, which may impact the earnings realisation of the oil majors. They also sold TCS and HCL Technologies on concerns over a slowdown in global demand for IT services during the last month.