Month: June 2025

FPI Buying Focused on Financials and Chemicals in June – Foreign Portfolio Investors showed strong interest in Financial Services, infusing ₹4,685 Cr during the first half of June 2025. Chemicals also attracted ₹1,405 Cr, reflecting a preference for defensive and globally integrated sectors. Oil & Gas and Capital Goods saw over ₹1,190 Cr each, indicating continued faith in core infrastructure themes. Realty, Services, Textiles and Media saw moderate inflows.

Heavy FPI Selling in FMCG & Power – FMCG led FPI outflows in early June with net selling of ₹3,626 Cr, likely due to high valuations and rural demand concerns. Power saw outflows of ₹3,120 Cr amid global yield volatility. Consumer Durables (₹1,893 Cr), IT (₹1,713 Cr) and Consumer Services (₹1,461 Cr) also saw pressure, indicating reduced appetite for rate-sensitive sectors. Telecom, Construction Materials and Metals & Mining faced smaller withdrawals.

FPI Sell-Off Resumes After Two-Month Relief – After reversing their selling streak with inflows of ₹4,223 Cr in April and ₹19,860 Cr in May, FPIs turned net sellers again in the first half of June 2025, offloading ₹5,401 Cr from equities. This retreat signals renewed caution amid global yield pressures and valuation concerns. On a year-to-date basis, FPIs have pulled out a massive ₹97,892 Cr from Indian equities, making 2025 one of the most volatile years for foreign flows.

FPI Debt Outflows Surge Amid Yield Volatility – FPIs also turned aggressive sellers in the Indian debt market, withdrawing a massive ₹27,063 Cr in the first half of June — the highest fortnightly debt outflow in 2025. This contrasts with their YTD debt inflows of ₹9,584 Cr, indicating rising concerns over global rate dynamics and currency stability. The sharp reversal could put pressure on bond yields and the rupee if the trend sustains.

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

Equity Mutual Funds Turn Buoyant in May Amid High Cash Reserves: India’s equity mutual funds adopted a more optimistic stance in May 2025, ramping up market purchases despite a decline in net inflows. However, overall cash holdings remained elevated at ₹2.17 Lakh Crore—only slightly lower than ₹2.3 Lakh Crore in April—indicating continued caution and selective deployment.

Top AMCs Cash Holding Ratio Falls to 5.75%: The average cash holding ratio among the top 20 AMCs declined to 5.75% in May, down from 6.53% in April, reflecting a measured increase in equity allocations.

PPFAS MF leads the pack with the highest cash holding ratio at 21.62%, reflecting its conservative and flexible investment approach. SBI MF holds the largest pile at ₹34,747 Cr, followed by HDFC MF ₹27,133 Cr and ICICI Pru MF ₹26,752 Cr, showing significant dry powder among large AMCs. Motilal Oswal MF and Quant MF follow with 13.56% and 10.35% of AUM in cash, respectively, highlighting strong liquidity positioning.

Motilal Oswal Flexi Cap Fund leads with the highest cash holding ratio at 33.34%, followed closely by Motilal Oswal Midcap Fund and Parag Parikh Flexi Cap Fund have cash holding ratios at 24.54% and 23.79% respectively, among the highest in active equity schemes. SBI Contra Fund and SBI Small Cap Fund maintain over 20% in cash.

Contra Funds top the chart with 16.08% of AUM in cash, indicating a highly cautious or opportunistic approach amid market uncertainty, Flexi Cap Funds follow with a substantial 10.26%, indicating a deliberate strategy focused on liquidity and tactical allocation flexibility. Focused Funds, with 8.76% in cash, appear to support their concentrated stock-picking approach with a healthy liquidity buffer. Small and Mid Cap Funds also show prudence, holding 7.98% and 7.15% respectively, likely to weather short-term volatility or await better entry points.

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

Equity Mutual Funds Scale New Peak at ₹32.05 Lakh Cr – Equity mutual funds extended their rally in May, posting a robust 4.83% rise in Net AUM to a record ₹32.05 Lakh Crs. Fueled by sharp gains in broader markets and record SIP inflows, the surge reflects rising investor confidence and bullish sentiment.

Mutual Funds Load Up on Swiggy, DLF, K.P.R Mill & More – In May, mutual funds expanded their portfolios with fresh additions including Swiggy, DLF, KFin Technologies, K.P.R. Mill and PNB Housing Finance. Other notable picks were Bajaj Auto, Divi’s Laboratories, ITC, Tata Steel, InterGlobe Aviation, HAL, BHEL and HPCL—reflecting a diverse investment approach across sectors.

MFs Exit REC, Blue Star, IndusInd Bank & More – May saw mutual funds trimming exposure in several key stocks, with exits from REC, Blue Star, PFC, IndusInd Bank and BSE. Other notable sell-offs included Sun Pharma, Kotak Mahindra Bank, Bajaj Finserv, NTPC, Tata Motors, Muthoot Finance, ITC Hotels, United Breweries and SRF—indicating portfolio realignment amid shifting market dynamics.

Midcap Moves: MFs Sell Nykaa & Dixon, Buy HPCL & BHEL – May saw mutual funds offloading several midcap names including Nykaa, Max Financial Services, Indian Hotels, GE Vernova T&D India, Dixon Technologies, Coforge, Concor and IndusInd Bank. On the flip side, HPCL and BHEL attracted fresh buying interest, marking a tactical shift in midcap allocations.

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

The Mutual Fund industry’s average AUM surged to an all-time high of ₹72.18 lakh crore in May 2025, up 3.86% from ₹69.50 lakh crore in April.

Equity-oriented mutual fund inflows fell for the fifth straight month to ₹19.01k cr —the lowest in a year. Yet, the category extended its winning streak to 51 consecutive months of net inflows.

Net inflows into hybrid funds jumped sharply in May, led by rising interest in Arbitrage Funds. The shift highlights investor preference for low-risk strategies amid equity market volatility and geopolitical concerns.

Inflows into other ETFs declined sharply, whereas Gold ETFs saw robust interest with inflows of ₹292 crore.

Despite net redemptions of ₹15,913 crore, the average AUM of debt mutual funds remained steady with a slight rise of 0.25% in May.

Corporate Bond Funds witnessed a sharp surge in inflows, rising by 469%.

SIP inflows rose marginally to a fresh all-time high of ₹26,688 crore in May, underlining steady retail participation and long-term investment commitment.

A total of 19 new schemes were launched in May, collectively mobilizing ₹4,170 crore.

For more details read through our comprehensive Mutual Fund Flow Report for May, 2025.

FPIs Shift Gears in May: Favour Telecom, Services & Capital Goods; Exit IT, Power & Healthcare

Sectors That Attracted FPI Flows

• Telecom, Services & Capital Goods Lead the Pack: FPIs showed strong bullishness in Telecommunication (₹8,089 Cr), Services (₹7,972 Cr), and Capital Goods (₹5,327 Cr)—with most flows concentrated in the second half of May, driven by optimism in digital infrastructure, outsourcing and industrial growth.
• Financials, Oil & Gas, and Chemicals Draw Steady Interest: Financial Services saw ₹4,028 Cr in net inflows, despite second-half profit-taking. Oil & Gas attracted ₹2,520 Cr, while Chemicals drew ₹1,308 Cr, signaling interest in core economy and energy-related sectors.
• Recovery Noted in FMCG & Construction Materials: After a weak start, FMCG reversed losses to close with ₹815 Cr in net buying. Construction Materials received ₹575 Cr, indicating a slow but steady accumulation.

Sectors Facing the Heat

• FPIs reduced their exposure in defensive and interest-rate sensitive sectors. Healthcare led the outflows with ₹2,614 Cr, followed by Power (₹2,494 Cr) and Information Technology (₹2,436 Cr).
• Consumer Durables, Realty, and Consumer Services also saw net selling between ₹491 Cr and ₹1,734 Cr.
• Smaller sectors like Textiles, Diversified and Construction Services witnessed minimal activity.

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