Big mutual fund houses vote for capital goods, rate-sensitives

Top six mutual fund houses such as HDFC AMC, ICICI Pru AMC, Reliance MF, Birla Sun Life AMC, UTI AMC and SBI Funds Management, which together hold over 60% market share of the mutual fund industry, were seen buying interest rate-sensitive stocks in November such as State Bank of India, Axis Bank, Punjab National Bank, and capital goods stocks like L&T, BHEL, Crompton Greaves on hopes of interest rate reduction in the economy.

Mutual fund houses have sold oil exploration companies such as ONGC on falling crude oil prices, which may impact their realisation, and TCS on concerns over global demand slowdown for IT services during the last month. Profi t-booking was also seen in select mid-caps such as Motherson Sumi and Titan.