Mutual fund investment into equities touched a new high in October as a surging stock market prompted investors to move money there.
Equity assets under management rose 7.4 percent compared to the previous month, also marking the fastest Rs 1 lakh crore jump, according to a report by brokerage house Motilal Oswal. This increase was driven by a 5.6 percent rise in the benchmark NSE Nifty 50 index in the same time period, the report said.
The weight of PSU banks, oil and gas, telecom, consumer, infrastructure and real estate increased, while that of private financials, technology and metals showed signs of moderation in October.
- Weight of oil and as increased from 6.7 percent in September to 7 percent.
- Metals moderated for the second consecutive month.
- Defensives' weight remained stable at 23.9 percent.
- Weight of technology decreased sharply by 120 basis points to 6.3 percent.
Among the top 10 stocks that saw the biggest increase in market capitalisation from September, four were from banks, data collated by Motilal Oswal showed. India's largest lender State Bank of India saw the largest increase in market value with a 20.5 percent rise in its share price. HDFC Bank was also one of the preferred stocks among mutual funds in October.
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