Fund Houses Exit Amtek Auto, Bet Big on Private Sector Banks
As the Indian economy struggles with defaults and liquidity issues, fund houses have accelerated their exit from debt-ridden Amtek Auto, with equity mutual funds and foreign institutional investors (FIIs) completely exiting the stock by September. Meanwhile, they have significantly increased their holdings in private sector banks, which have consistently outperformed their public sector peers. Private sector banks like Axis Bank, IndusInd Bank, HDFC Bank, and ICICI Bank have been the hot favorites of fund houses, with HDFC Bank emerging as the most preferred scrip.
Key Takeaways:
- Fund houses have completely exited Amtek Auto, with equity mutual funds and FIIs offloading nearly 55 lakh shares of the company.
- The scrI had lost nearly three-fourths of its value between July and September, plunging to ₹43.9.
- Axis Bank emerged as one of the hot favorites during July-September, with equity funds picking up nearly 3.09 crore additional shares of the bank.
- IndusInd Bank also saw a huge interest from fund houses, with their exposure in the scrip increasing from 6.79% to 9.81% during the quarter.
- Private sector behemoths HDFC Bank and ICICI Bank remained hot picks for fund houses, with HDFC Bank being the most preferred scrip of fund houses.
Statistics:
- Equity mutual funds held 1,571 shares of Amtek Auto during the quarter ended September.
- Fund houses collectively owned 2.45% of Amtek Auto during the quarter ended June.
- Equity mutual funds picked up 3.09 crore additional shares of Axis Bank in the quarter.
- IndusInd Bank saw a 34.4% increase in equity fund holdings during the quarter, from 6.79% to 9.81%.
- HDFC Bank emerged the most preferred scrip, with as many as 523 schemes owning the stock.
- ICICI Bank came second, with 510 schemes holding the scrip.
Sources:
- HDFC Securities
- Business Standard
- Economic Times