Mutual funds have bet high on Tata Motors Ltd. and Maruti Suzuki India Ltd., among others, after they continued to see strong inflows with their asset base hitting a fresh record high of Rs 66.7 lakh crore in August.
Retail investors continued to pour money into actively managed equity schemes that have delivered stellar returns since the bull run in Indian equities began, causing investable pockets in the market where valuation comfort still lies to shrink, according to fund managers.
It is undeniable that valuations appear expensive when compared to their historic averages, according to Ashish Gupta, chief investment officer at Axis Mutual Fund.
"Very few undiscovered pockets remain in the market," he told NDTV Profit, while stating that some pockets of opportunity do still exist in the small and midcap space.
As actively managed mutual funds recorded their second largest ever inflows during the month of August at Rs 38,239.16 crore, these stocks were the top-bought stocks by the largest mutual fund houses:
Tata Motors Ltd. was the top addition based on the value of shares bought during August for two mutual fund houses, including SBI Mutual Fund, the largest asset size under management, and ICICI Prudential Mutual Fund.
Maruti Suzuki India Ltd. was the top buy for HDFC Mutual Fund, while also taking the spot for the top sell for Kotak Mutual Fund.
State Bank of India Ltd. was the stock that saw the biggest reduction by two asset management companies, followed by Sun Pharmaceutical Industries Ltd. The other AMC was Aditya Birla Fashion and Retail Ltd.
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