MFs turn selective, pick Coal India, LIC among largecaps in August
Amid the backdrop of increasing US interest rates in August, fund managers proceeded with caution, prioritizing large-cap stocks that offered favorable valuations coupled with safety margins. Their approach in mid and small-cap investments was sel...
Fund managers adopted a cautious approach in August amid concerns over rising US interest rates and a large pipeline of IPOs.
In the large-cap space, fund managers were selective, buying stocks where recent declines had made valuations more attractive and offered a margin of safety. LIC, Coal India, metal stocks such as Hindalco and JSW Steel, and pharmaceutical companies including Dr Reddy’s Laboratories and Sun Pharma were among the stocks that found favour.
In the mid- and small-cap segments, which contributed to more than half of the recent inflows into equity schemes, fund houses remained stock-specific. Funds were seen buying stocks such as Rubicon Research and Viyash Scientific, as well as NBFCs including Tata Capital and Piramal Finance.
Parag Parikh Flexi Cap Fund increase stake in HDFC Bank, Coal India, and 8 others in August
