Mutual funds (MFs) snapped up HDFC Bank shares in January following a two-month selling binge, coinciding with a dramatic decline in the stock price following the release of third-quarter data.
According to Nuvama Alternative & Quantitative Research reports, MFs sold 53.3 million shares in November and December and purchased 88.2 million shares in January.
An estimated Rs 12,890 crore has been used as the total capital deployed. They had extracted about Rs 8,600 crore in the preceding two months.
In January, HDFC Bank experienced a 14.4% correction due to record selling by foreign portfolio investors (FPIs).
Due to an unsatisfactory outcome, the stock saw its largest one-day drop since the Covid-19 crash on January 17, dropping 8.4%.
The majority of fund houses stated in their view for 2024 that they are bullish on larger banks because of their robust fundamentals and relatively superior valuations when compared to other market categories.
In addition to HDFC Bank, Reliance Industries, Kotak Mahindra Bank, Maruti Suzuki, and SBI are among the top buys for mutual funds. Between Rs 3,280 crore and Rs 1,460 crore were invested.
The biggest sold stock was ICICI Bank, with MFs taking out Rs 3,470 crore. A few other of the most popular stocks were Infosys, NTPC, Bharti Airtel, and Tata Motors. Strong Mutual Fund buying interest in HDFC Bank amid correction.
