Timber Synopsis
Indian investors poured money into exchange-traded funds and index funds in October. Pension fund EPFO led the way, investing heavily during a market dip. Mutual funds remained active buyers, absorbing foreign investor sales. Mid-cap and small-cap funds saw record inflows. Investors favored sectors like MNCs, consumption, and infrastructure.ETMarkets.comAllocations to exchange-traded funds (ETFs) surged to ₹13,440 crore, up from just ₹381 crore in September and a one-year average of ₹5,440 crore, according to data from Elara Capital. Similarly, allocations to index funds jumped to ₹8,000 crore, compared to ₹1,960 crore in September.
Nearly 80% of ETF inflows were directed toward Nifty ETFs. The flows have largely been driven by pension money.
“The surge in ETF and index fund allocations in October was largely driven by the Employees’ Provident Fund Organisation (EPFO), which invested heavily during the market correction,” said A. Balasubramanian, MD & CEO of Aditya Birla Sun Life AMC. “India’s institutional mechanisms have significantly improved, with large funds like EPFO actively investing during market dips.”
ETMarkets.com
EPFO can invest a maximum of 15% in equities and related instruments. EPFO investments in equity are through Exchange Traded Funds (ETF) only.
Mutual funds purchased shares worth ₹90,000 crores in October 2024, absorbing the sale of ₹1.04 lakh crores by foreign institutional investors.
“One concern among market participants has been the depletion in mutual funds’ cash levels due to the absorption of heavy FII supply in October. Surprisingly, domestic mutual fund schemes’ absolute cash balances have declined by only ₹ 650 crore to ₹ 1.67 lakh crore, as domestic inflows have accelerated,” said Sunil Jain, Vice President, Elara Capital.
Midcap fund inflows hit a record high of ₹4,683 crore in October, up from ₹3,130 crore in September and a one-year average of ₹2,175 crore, showed Elara Capital data. Small-cap inflows climbed to an 11-month high of ₹3,772 crore.
Inflow into active schemes was at ₹42,000 crores compared to ₹34,500 in September. Total equity inflow stood at ₹63,440 crores. Hybrid schemes saw an inflow of ₹16,870 crores, which have around 60-70% equity exposure.
Within sectoral funds, MNC funds witnessed strong inflows of ₹2,287 crore in October, followed by consumption funds at ₹1,553 crore, infrastructure at ₹1,042 crore, and banking and finance at ₹730 crore.
Among stocks, large-cap buying was dominated by HDFC Bank, Zomato, M&M, JSW Energy, Axis Bank, GAIL, and Asian Paints.
On the other hand, Reliance Industries, Trent, Maruti, ITC, and Cummins India saw the highest selling activity.
Read More News on(What’s moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
…moreless
(You can now subscribe to our ETMarkets WhatsApp channel)
Read More News on(What’s moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
…moreless