Mutual Funds Buy Into Financials, IT And FMCG As FIIs Sell In June

Mutual funds turned net buyers of stocks across several major sectors in June, even as foreign institutional investors (FIIs) continued to reduce their exposure, data from the Association of Mutual Funds in India (AMFI) and NSDL showed.

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The biggest gap between domestic and foreign investment was recorded in financial services. FIIs sold shares worth around ₹12,453 crore during the month, while mutual funds invested approximately ₹9,296 crore in the sector.

Fund houses increased their holdings in Bajaj Finance, HDFC Bank, Kotak Mahindra Bank, Canara Bank, Federal Bank, Yes Bank and Bank of India. At the same time, they reduced exposure to ICICI Bank, State Bank of India, Sammaan Capital, Axis Bank, IndusInd Bank and Bajaj Finserv.

Mutual Funds Add IT And FMCG Stocks

The IT sector also recorded a wide difference in investor activity. FIIs were net sellers of shares worth more than ₹7,444 crore, while mutual funds bought stocks worth around ₹1,732 crore.

Infosys, Tech Mahindra, HCL Technologies, Coforge and Tata Technologies were among the companies where mutual funds raised their exposure. Their holdings declined in Wipro, Persistent Systems, Cyient, L&T

Technology Services and KPIT Technologies.

In FMCG, FIIs sold shares worth approximately ₹5,598 crore in June, compared with mutual fund purchases of around ₹3,545 crore. Mutual funds added Hindustan Unilever, Doms Industries, Britannia Industries, Nestle India,

Tata Consumer Products, United Spirits and Dabur India.

Their exposure to ITC, Patanjali Foods, Colgate-Palmolive India and Procter & Gamble was reduced during the month.

Healthcare Also Sees Domestic Buying

Healthcare followed a similar pattern. FIIs sold shares worth ₹4,976 crore, while mutual funds invested approximately ₹5,139 crore.

Fund houses increased their holdings in Ajanta Pharma, Divi’s Laboratories, Alkem Laboratories and Torrent Pharmaceuticals. They trimmed positions in Gland Pharma, Aurobindo Pharma, Biocon, Laurus Labs, Vijaya

Diagnostic Centre and Lupin.

The investment flows came as stock-specific activity continued across sectors. For investors tracking individual companies, the movement in a stock price share price can reflect both broader institutional allocation trends and company-specific developments, although the sector-level data does not indicate the reasons behind each individual transaction.

Services And Telecom See Buying From Both Groups

Services and telecom were the two sectors where both mutual funds and FIIs remained net buyers in June.

Mutual funds invested around ₹5,351 crore in services, while FIIs bought shares worth approximately ₹334 crore.
In telecom, mutual funds made purchases of around ₹1,860 crore, compared with FII buying of approximately ₹412 crore.

The June data highlights a continued divergence between domestic mutual fund flows and foreign institutional activity across several key sectors, with financials, IT, FMCG and healthcare seeing mutual fund buying despite net FII selling.