Banks, IT mutual funds top picks in February

Top six mutual fund (MF) houses such as HDFC MF, ICICI Prudential AMC, Reliance MF, Birla Sun Life AMC, UTI MF and SBI Funds Management, which together hold over 60% market share of the mutual fund industry, were seen buying private banks such as HDFC Bank and Axis Bank, and capital goods companies like L&T in February.



It was in anticipation that the Union Budget would push investment growth, while the Reserve Bank of India (RBI) would cut interest rates. IT firms like TCS and Infosys were also back on fund managers’ radar on hopes that recovery in US economy may translate to higher revenue growth.

Meanwhile, funds houses have sold oil & gas companies like ONGC and Oil India on concerns over lower crude realisation due to softening of crude prices. They have also selectively booked profi ts in mid-cap fi rms like Tech Mahindra, CESC, PC Jeweller and Shriram City Union.