MFs accumulate capital goods, rate-cut beneficiaries in May
In May, despite reduced equity mutual fund inflows due to profit booking, fund managers adjusted portfolios, favoring large-cap companies. They capitalized on corrections in the capital goods sector, acquiring stocks like GE Vernova and BHEL, anticipating power sector growth.
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In May, as the Nifty 50 rose for the third consecutive month and profit booking by investors led to lower inflows into equity mutual fund schemes, fund managers churned portfolios with a bias towards largecap companies.With the long-term outlook for the power sector remaining robust, they used the opportunity to buy into the capital goods segment, which had seen a steep correction over the past six months, adding stocks like GE Vernova, BHEL , and Kirloskar Oil Engines Expectations of rate cut transmission leading to higher demand for consumer and housing loans—benefiting the margins of NBFCs (Non-Banking Finance Companies) —prompted selective buying in NBFCs and HFCs (Housing Finance Companies) such as Bajaj Finserv PNB Housing Finance , and Can Fin Homes Large fund houses also accumulated Eternal and Swiggy after 20–25% correction in stock prices, driven by strong growth in the quick commerce segment.
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