Mutual Funds Step In As Buyers In Financials, IT, FMCG And Healthcare As FIIs Sell In June

Domestic mutual funds and foreign institutional investors (FIIs) moved in opposite directions across several key sectors in June, with mutual funds absorbing selling pressure from FIIs in financial services, information technology (IT), fast-moving consumer goods (FMCG) and healthcare.

The divergence was sharpest in financial services, where FIIs sold shares worth approximately ₹12,453 crore while mutual funds bought around ₹9,296 crore, according to National Securities Depository Limited (NSDL) and Association of Mutual Funds in India (AMFI) data, respectively.

Financial Services

Within the financial services sector, mutual funds added exposure to Bajaj Finance, HDFC Bank, Kotak Mahindra Bank, Canara Bank, Federal Bank, Yes Bank and Bank of India.

At the same time, they trimmed holdings in ICICI Bank, SBI, Axis Bank, IndusInd Bank, Bajaj Finserv and Sammaan Capital. FIIs were net sellers across the broader sector during the month.

Healthcare

Healthcare saw mutual funds invest around ₹5,139 crore against FII sales of ₹4,976 crore. Fund houses bought into Ajanta Pharma, Divi's Laboratories, Alkem Laboratories and Torrent Pharmaceuticals, while paring exposure to Gland Pharma, Aurobindo Pharma, Biocon, Laurus Labs, Vijaya Diagnostic Centre and Lupin.

Information Technology

The IT sector saw FIIs offload shares worth over ₹7,444 crore in June, while mutual funds were net buyers to the tune of approximately ₹1,732 crore. Fund houses added Infosys, Tech Mahindra, HCL Technologies, Coforge and Tata Technologies to their portfolios, while reducing exposure to Wipro, Persistent Systems, Cyient, L&T Technology Services and KPIT Technologies.

FMCG

In the FMCG sector, FIIs sold shares worth around ₹5,598 crore during the month, while mutual funds invested approximately ₹3,545 crore. Funds accumulated in Hindustan Unilever, Britannia Industries, Nestle India, Tata Consumer Products, Doms Industries, United Spirits and Dabur India, while reducing positions in ITC, Patanjali Foods, Colgate-Palmolive India and Procter & Gamble.

Where Both Bought

Services and telecom stood apart from the broader trend, with both mutual funds and FIIs remaining net buyers. Mutual funds invested around ₹5,351 crore in the services sector, while FIIs made relatively modest purchases of ₹334 crore. In telecom, mutual funds bought shares worth around ₹1,860 crore against FII purchases of approximately ₹412 crore.

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