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Mutual funds load up on bank stocks in September, buy Kotak and ICICI Bank shares worth over Rs 3,000 crore

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The total cash and equivalents held by mutual funds decreased slightly from Rs 1,76,500 crore (5.23%) in August to Rs 1,76,100 crore (5.13%) in September, according to a report by Nuvama Institutional Equities.

Key additions across the mutual fund industry included Kotak Bank (Rs 3,900 crore), ICICI Bank (Rs 3,700 crore), and Eternal (Rs 3,300 crore), while notable reductions were seen in Axis Bank (Rs 2,800 crore), Maruti Suzuki (Rs 2,400 crore), and Bajaj Finance (Rs 2,200 crore).

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In the large-cap segment, key buying was seen in HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Mahindra & Mahindra, and Tata Steel, while notable selling occurred in Trent, Reliance Industries, Marico, NTPC, and ICICI Lombard.

For the third consecutive month, mutual funds added Reliance Industries, TCS, ICICI Bank, SBI, and Infosys, while trimming exposure to Coal India, LTIMindtree, Bosch, HDFC AMC, and Muthoot Finance.

In the mid-cap space, funds bought into Dalmia Bharat, Hero MotoCorp, Indus Towers, Ashok Leyland, and AU Small Finance Bank, while cutting positions in Max Healthcare, Bharat Forge, HDFC AMC, Container Corporation, and NMDC.

Top additions in the mid-cap category included Cohance Lifesciences (Rs 2,400 crore), Aptus Value Housing (Rs 1,100 crore), and Sammaan Capital (Rs 1,000 crore), while key reductions were Tega Industries (Rs 400 crore), Himadri Specialty (Rs 300 crore), and Tata Chemicals (Rs 300 crore).

Over the past three months, funds consistently added Bank of Maharashtra, Blue Star, Gujarat Fluorochemicals, Global Health, and SJVN, while reducing stakes in ACC, KPIT Technologies, Tata Technologies, Deepak Nitrite, and TVS Holdings.

In the small-cap segment, major additions were Kingfa Science (Rs 400 crore), HealthGlobal (Rs 400 crore), and Aditya Vision (Rs 300 crore), whereas key exits included RateGain Travel (Rs 200 crore), KNR Constructions (Rs 100 crore), and Praj Industries (Rs 100 crore).

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In the small-cap segment, significant buying was seen in Aptus Value Housing, Multi Commodity Exchange, HealthGlobal, Asahi India Glass, and PNB Housing, while notable selling was recorded in Hitachi Energy, Tega Industries, BSE, Gabriel India, and KNR Constructions.

New entries in the small-cap basket included Dynamatic Technologies and Hindustan Copper, while Prataap Snacks, Fusion Microfinance, Orient Cement, Himatsingka Seide, and Suraj Estate saw complete exits.

For the third consecutive month, mutual funds consistently added Shakti Pumps, NESCO, Azad Engineering, KRBL, and HealthGlobal, while trimming positions in Graphite India, Genus Power, Power Mech Projects, Aditya Birla Fashion, and Thomas Cook (India).
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