Portfolios

As 2024 draws to a close, investors eagerly await the much-anticipated Santa Claus Rally, a seasonal trend that has consistently brought cheer to markets worldwide.

A Santa Claus rally is a seasonal phenomenon that involves a rise in stock prices during the last 5 trading days in December and the first 2 trading days in the following January. It refers to the jump in stock prices in the week between Christmas and New Year’s Day.

During the Santa Claus Rally of 2023, the Indian benchmark index Nifty recorded a modest but positive return of 0.79%, marking its sixth straight year of gains and reinforcing the rally’s reputation as a dependable year-end phenomenon in the Indian market. Historically, this rally has failed only three times in the past 24 years, underlining its reliability in the Indian equity market.

This year, however, the landscape is different. With central banks across the globe adjusting their rate strategies, inflationary pressures persisting and geopolitical tensions casting a shadow, the question arises—will the Santa Claus Rally live up to its legacy?

The Indian markets are feeling the heat this December, with the Nifty index posting negative returns of 2.25% so far. Yet, an impressive 8.5% YTD gain in 2024 keeps the festive optimism alive. Will the Santa Claus Rally bring a festive turnaround? Let’s wait and watch!

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

FPIs Shift to Buying Mode: Focus on Financials, IT, Realty and More – Following significant selloffs in October and November, FPIs have turned buyers in the first half of December, signaling a shift in strategy. Their investments are now focused on sectors like Financial Services, Information Technology and Realty, along with Consumer Services, Capital Goods, Healthcare, Construction and Metal & Mining.

FPIs Divest Aggressively in Oil & Gas Sector – In the first half of December, FPIs executed a significant selloff in the Oil & Gas sector, disinvesting ₹5,337 crore. Other sectors that witnessed selloffs include Automobiles & Auto Components, FMCG, Consumer Durables, Power and Construction Materials, reflecting a strategic reallocation of investments by foreign players.

FPIs Back with a Bang: ₹22,766 Cr Pours into Indian Equities in December’s First Half – FPIs shifted gears in December, becoming net buyers after October and November sell-off. Equity purchases through secondary markets hit ₹14,435 Cr in the first half of December, sparking a recovery from November lows. Total FPI investment, including primary market investments and others, surged to ₹22,766 Cr.

FPIs Spark Record-Breaking Debt Market Investment in 2024 – 2024 is shaping up as a landmark year for FPI investments in Indian debt markets. FPIs poured ₹12,374 Cr into the Indian debt market in the first half of December. Cumulative FPI debt investment surged to ₹1,52,637 Cr, marking an all-time high for Indian debt markets. This milestone surpasses the previous record of ₹1,48,808 Cr set in 2017.

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

Equity MFs Target High-Potential IPOs in November: More than 75 equity mutual fund schemes actively participated in November’s standout IPOs, including Swiggy and NTPC Green Energy. Other notable offerings, such as Sagility India, Acme Solar Holdings and Suraksha Diagnostic Ltd, also attracted significant investments. This trend highlights fund managers’ strategic focus on high-potential market entrants to drive portfolio growth.

Top New Investment Picks by Equity Mutual Funds: Several equity mutual fund schemes have demonstrated a strong preference for fresh investments in companies such as Wockhardt, KEI Industries, Zomato, Varun Beverages, Interglobe Aviation, Affle India, Hindalco Industries and Bharat Electronics.

Equity Schemes Exit Key Positions in Major Companies: Several equity schemes have fully exited their positions in companies such as Cholamandalam Investment & Finance, NTPC, Cummins India, Honasa Consumer, Ola Electric Mobility, Power Grid, Bajaj Auto, Alkem Laboratories, Hero Motocorp, Premier Energies, Brigade Enterprises and Waaree Energies.

Mid-Cap Moves: Among the top-traded mid-cap stocks, many schemes invested in companies such as KEI Industries and Lupin. Meanwhile, several equity schemes chose to sell holdings in Coforge, Voltas, The Indian Hotels Company, FSN E-Commerce(NYKAA), Info Edge, Fortis Healthcare, Oberoi Realty and Mphasis.

Small-Cap Shifts: Among the most actively traded small-cap stocks, various equity schemes directed their investments towards companies such as Wockhardt, Medplus Health Services, Welspun Corp, PNB Housing Finance, Timken India and Aster DM Healthcare, while notable disinvestment occurred in MCX, Radico Khaitan and Aditya Birla Real Estate.

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

The Mutual Fund industry’s average AUM dipped by 0.66% in November, settling at ₹68.05 Lakh Cr, even as net inflows surged to ₹60,295 Cr.

Equity oriented schemes saw ₹35.94K Cr inflows in November, marking an extraordinary 45 month streak of positive contributions. However, a slight market correction led to a dip in the Average AUM at ₹29.79 Lakh Cr.

Sectoral and Thematic funds faced a significant drop, with inflows plunging to ₹7,658 Cr from ₹12.27K Cr in October.

Arbitrage funds saw a sharp reversal with an outflow of ₹1,332 Cr in November, compared to inflow of ₹7.18K Cr in October, leading to a 75% drop in Hybrid fund inflows.

Exchange-Traded Funds (ETFs) saw inflows plummet to ₹1,531.2 Cr in November, a sharp decline from ₹13,441.8 Cr recorded in October.

The average AUM of debt funds increased by 1.89% in November, despite a sharp 92% drop in net inflows to ₹12,916 Cr, compared to ₹1,57,402 Cr in October.

Systematic Investment Plans (SIPs) once again garnered ₹25,320 Cr in November, maintaining near-parity with October’s ₹25,323 Cr, reflecting consistent investor confidence.

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

FPIs Bet on IT, Financials and Realty Amid November Selloff – Amid selloffs in November, FPIs made investments in the Information Technology, Financial Services, Realty, Construction, Healthcare, Textiles and Utilities, indicating cautious, sector-specific interest despite broader market challenges.

FPI Record Selloff Hits Key Sectors: Oil & Gas, Auto, Telecom and More – In November, FPIs significantly reduced holdings across crucial sectors like Oil & Gas, Automobile & Auto Components, Telecommunication, Services, Construction Materials, FMCG, Metal & Mining and Power. This widespread selloff underscores rising global uncertainties and intensifying market pressures.

FFPIs Turn Net Sellers in 2024 as November Records Slower Selloffs Amid Volatility – FPIs pulled ₹21,612 Crs from the markets in November, citing expensive valuations and weak Q2 earnings, a notable slowdown compared to October’s sharp selloff. The November selloff pushed FPIs into net selling territory for the calendar year 2024, with total year-to-date selloff amounting to ₹15,019 Crs, reflecting increased market pressures and cautious sentiment.

FPI Muted in Debt Market: November Witnesses Minor Selloff – This marginal selloff brought the cumulative debt market investments for the calendar year down to ₹1,40,263 Crs, highlighting reduced foreign interest. FPIs sold a modest ₹36 Crs in India’s debt market in November 2024, reflecting subdued activity in the segment.

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

Equity Mutual Fund Schemes Invest in Hyundai Motor India IPO, Highlighting October’s Largest Debut: A total of 77 equity mutual fund schemes showed strong interest in October’s largest IPO, Hyundai Motor India. Other prominent IPOs, including Waaree Energies and Afcons Infrastructure, also drew investments from numerous equity schemes, underscoring fund managers’ focus on high-potential market entrants for portfolio growth.

Top New Investment Picks by Equity Mutual Funds: Several equity mutual fund schemes have demonstrated a strong preference for fresh investments in companies such as Mahindra & Mahindra, Angel One, 360 One Wam, Torrent Pharmaceuticals, Coforge, National Aluminium Company, PB Fintech and Dixon Technologies.

Equity Schemes Exit Major Companies Like Tata Motors and ONGC: Several equity schemes have fully exited their positions in companies such as Indus Towers, Tata Motors, ONGC, Dr. Reddy’s Laboratories, Hindustan Aeronautics, Oil India, Coal India, Vedanta, Bharat Electronics, Vodafone India, Indian Bank, GAIL, Bank of Baroda and Tech Mahindra.

Equity Schemes Exit Key Positions in Avenue Supermart and Tata Motors: Several equity schemes have fully exited their positions in companies such as Avenue Supermart, Tata Motors, Bharat Electronics, Indus Towers, Mphasis, Tata Steel, HAL, Honeywell Automation India, Global Health, ONGC, Oil India and Credit Access Gramin.

Mid-Cap Moves: Among the top-traded mid-cap stocks, many schemes invested in companies such as Coforge, Dixon Technologies, Max Healthcare Institute, Polycab India, HPCL and PAYTM. Meanwhile, several equity schemes chose to sell holdings in Sona BLW Precision Forgings, Voltas and Mphasis.

Small-Cap Shifts: Among the most actively traded small-cap stocks, various equity schemes directed their investments towards companies such as Balrampur Chini Mills, Sansera Engineering, 360 One Wam, Angel One, Birlasoft and Firstsource Solutions, while notable disinvestment occurred in  GE Vernova T&D India, MCX, Whirlpool of India and Aether Industries.

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

The mutual fund industry’s average AUM rose by 0.73% to reach ₹68.50 lakh crore.

Equity-oriented schemes recorded their highest-ever inflows at ₹41.89K crore, showing continued investor confidence despite market volatility.

Sectoral and thematic funds continued to see strong interest, with inflows at ₹12.28K crore, driven by new scheme launches.

Passive investments gained traction, with net inflows into index funds and ETFs surging by 619% to ₹23.43K crore, led by strong retail demand and overseas fund interest.

Hybrid schemes surged, with inflows up by 244% to ₹16.86K crore, led by arbitrage and dynamic funds.

Debt funds saw a major rebound, with average AUM increasing by 4.36% and net inflows reaching ₹1.57 lakh crore, driven by reinvestment post-tax outflows in September.

SIP investments reached a new all-time high of ₹25,322 crore, marking 16 consecutive months of record-breaking inflows.

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

Highest FPI Outflows in Indian Equity Market History – This massive sell-off led to a 6% decline in Sensex and Nifty, marking the steepest drop since the March 2020 market turmoil. Foreign investors pulled a historic ₹94,017 Crs from Indian equities in October, driven by high valuations and enticing prices in China. Foreign Portfolio Investors sold Indian stocks nearly every trading day in October, with a peak single-day selloff of ₹15,506 Crs on October 3rd, intensifying market pressure throughout the month.

FPI Turnaround: Indian Debt Market Sees First Net Outflow Since April – This selling pressure further reduced their total investments in the debt segment, bringing cumulative inflows for the calendar year down to ₹140,299 crore. In October 2024, Foreign Institutional Investors (FIIs) sold ₹3,632 Crs in India’s debt market.

FPI Record Selloff Hits Key Sectors: Financials, Oil & Gas, FMCG, Auto and More – This widespread selloff underscores rising global uncertainties and intensifying market pressures. In October, FPIs significantly reduced holdings across crucial sectors like Financial Services, Oil & Gas, FMCG, Automobiles, Consumer Services, Construction and IT. 

Record DII Buying Cushions FPI Selloff in October – Domestic Institutional Investors (DIIs) have stepped up in 2024, providing much-needed support to the Indian markets amid heavy selling by Foreign Portfolio Investors (FPIs). 

Mutual Funds Lead the DII Charge with ₹3.70 Trillion Investment in 2024 – Mutual Funds have powered the record-setting DII inflows this year, contributing an impressive ₹3.70 trillion out of the total ₹4.47 trillion. In October alone, they invested ₹90,152 Crs in Indian equity markets, reinforcing their role as a key market stabilizer.

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

Equity Funds Favor Fresh Investments in Mid and Small-Cap Companies: Several equity mutual fund schemes have demonstrated a strong preference for fresh investments in companies such as GE T&D India, Samvardhana Motherson International, Brigade Enterprises, SpiceJet, KEC International, PTC Industries, National Aluminium Company, Punjab National Bank, Bajaj Finance, Larsen & Toubro and PB Fintech.

Equity Funds Show Strong Interest in New IPOs: Moreover, many equity mutual fund schemes have shown a clear preference for new investments in IPOs, including promising names such as Bajaj Housing Finance, PN Gadgil Jewellers, Premier Energies and Kross Ltd.

Equity Schemes Exit Major Companies Like Tata Motors and ONGC: Several equity schemes have fully exited their positions in companies such as Indus Towers, Tata Motors, ONGC, Dr. Reddy’s Laboratories, Hindustan Aeronautics, Oil India, Coal India, Vedanta, Bharat Electronics, Vodafone India, Indian Bank, GAIL, Bank of Baroda and Tech Mahindra.

Equity Funds Accumulate Shares in Top Market Leaders: Overall, equity mutual fund schemes have been actively accumulating shares in prominent companies like L&T, HDFC Bank, Samvardhana Motherson International, Zomato, Axis Bank, Maruti Suzuki India, ITC, Kotak Mahindra Bank, M&M, IndusInd Bank and Bajaj Finance, reflecting their strong confidence in these market leaders.

Equity Funds Invest in Small-Caps: Among the most actively traded small-cap stocks, various equity schemes directed their investments towards companies such as GE T&D India, KEC International, K.P.R. Mill, Indigo Paints, Brigade Enterprises, Gujarat State Petronet and PNB Housing Finance, while notable disinvestment occurred in MCX, Birlasoft and SKF India.

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

The Mutual Fund industry’s Average AUM surged by 2.97%, reaching an impressive ₹68 Lakh Crs in September.

Equity oriented schemes have experienced 43 consecutive months of positive inflows, elevating the average AUM to ₹30.65 Lakh Crs.

SIP investments hit a record high of ₹24,509 Crs, marking 15 consecutive months of all-time high inflows.

The Dividend Yield category saw a significant jump in inflows in September 2024, reaching ₹1.5K Crs with ₹1,006 Crs contributed by NFO.

Inflows into hybrid schemes saw a sharp decline of 52%, dropping to ₹4.9K Crs, largely due to significant outflows from arbitrage funds.

The average AUM of debt funds decreased by 0.75%, experiencing a net outflow of ₹1.13 Lakh Crs in September.

Among long-term debt funds, Corporate Bond funds experienced the highest inflow, receiving ₹5.04K Crs, followed closely by Gilt funds.

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