Month: June 2024

Many equity mutual fund schemes have demonstrated a significant inclination towards new investments in IPOs, including TBO Tek, Go Digit General Insurance, Aadhar Housing Finance, Indegene and Awfis Space Solutions. Additionally, they have shown a preference for fresh investments in well-established companies such as HDFC Bank, Kotak Mahindra Bank, Hero Motocorp, Titagarh Rail Systems, Cipla, Dabur and Power Finance Corporation.

Several equity schemes have strategically exited their holdings in companies such as Coforge, Bajaj Finance, DLF, Bharat Electronics, AIA Engineering, LTIMindtree, Canara Bank, GAIL, Wipro, Lupin, BHEL, and GMR Airports Infrastructure.

Overall, equity mutual fund schemes have been actively acquiring shares in prominent companies such as HDFC Bank, Kotak Mahindra Bank, Apollo Hospitals, Larsen & Toubro, Sun Pharma, Zomato, Cipla and Power Finance Corporation.

Among most traded stocks, there was selloff in Coforge, Cummins India, Bharat Electronics, Hindustan Aeronautics, State Bank of India, ICICI Bank, REC, Bajaj Finance and Tata Motors.

Among the top traded mid-cap stocks, several equity schemes preferred to sell Torrent Power, Prestige Estates Projects, Thermax, NHPC and Solar Industries India. Conversely, many schemes invested in stocks like Samvardhana Motherson International, Hero Motocorp and CG Power & Industrial Solutions.

Among the most actively traded small-cap stocks, various equity schemes directed their investments towards companies such as Crompton Greaves Consumer Electricals, Aditya Birla Fashion & Retail, BEML, Cyient, HUDCO, Global Health, Gujarat State Petronet, Apar Industries and Aptus Value Housing Finance. Concurrently, there was notable disinvestment from Carborundum Universal Ltd.

For a comprehensive understanding and more insights, please go through our detailed report.

The Mutual Fund industry‘s Avg. AUM surged by 2.78%, reaching ₹58.59 Lakh crore in May.

The average AUM of Equity Oriented Schemes increased by 3.5% to ₹25.07 lakh crore.

Net inflows in equity mutual funds in May are the highest on record since April 2019, when AMFI started reporting monthly mutual fund flows in the current format.

Sectoral/Thematic fund inflows hit a record ₹19.21K crore, driven by NFOs like the HDFC Manufacturing Fund, which garnered ₹9.56K crore.

Hybrid schemes experienced a dip of 9% in net inflows to ₹17.99K crore.

The average AUM of Debt Funds rose by 1.41% to ₹15.03 lakh crore in May.

Funds have flowed into categories with a duration profile of less than a year amid potential volatility due to the ongoing general elections and uncertainty surrounding the interest rate cycle.

Investment via SIPs reached an all-time high of ₹20,904 crore in May!

For an in-depth exploration, read through our comprehensive Mutual Fund Flow Report for May 2024.

As we approach the exit poll results in the evening and eagerly await the final verdict of the election results on Tuesday, the Indian markets are experiencing significant volatility due to the uncertain outcome. This pivotal moment raises several key questions for investors:

• What should we anticipate in the Indian market?
• How will the Nifty index react?
• What returns can we expect on the Nifty index on election result day or in the near term following the results?

We have analyzed data from 1999 onwards, encompassing five election cycles. In these cycles, the UPA triumphed in two elections, while the NDA secured victory in three.

This report examines Nifty index returns before, on, and after election result dates for the past five elections.

Summary of Key Findings

On Election Result Date: Returns are typically modest and show no significant spikes, indicating that the market had already priced in the anticipated election results or waiting for analysis of the final verdict.

Trend Continuity: The trend of returns 1 month before and 1 month after the election remains the same.

For a comprehensive understanding and more insights, please go through our detailed report.