Mutual Funds Pour ₹16,000 Crore into Infosys, RIL, Coforge & 7 Others in April
In a strong show of confidence, mutual funds (MFs) invested a massive ₹16,000 crore in just 10 largecap and midcap stocks over a 30-day span in April. Major companies such as Infosys, Reliance Industries (RIL), and Coforge were among the top beneficiaries of this surge in institutional buying, coinciding with the Q4 earnings season.
- The spike in MF inflows reflects strategic repositioning ahead of anticipated corporate results.
- The broader market also saw institutional net equity purchases of ₹17,000 crore during the same period.
Infosys, TCS, and RIL Lead IT and Energy Inflows
Infosys saw the largest inflow, with MFs acquiring 2 crore additional shares valued at ₹3,000 crore, increasing their total holding to 77.3 crore shares in April from 75.3 crore in March.
- The accumulation indicates strong belief in Infosys’ recovery and long-term value.
- This buying spree came despite recent earnings volatility in the IT sector.
Tata Consultancy Services (TCS) followed with MF investments worth ₹2,400 crore, involving the purchase of 70 lakh additional shares.
- The consistent flow into TCS shows investor preference for stable largecap IT bets.
Reliance Industries attracted ₹1,700 crore in MF inflows, as mutual funds bought 1.2 crore additional shares, underlining steady interest in the conglomerate’s diversified revenue streams.
- RIL continues to benefit from sectoral leadership in energy, retail, and telecom.
- The stock remains among the top holdings for institutional investors.
Sectoral Favourites: Banking, Steel, and Pharma
In addition to IT and energy, Coforge, Kotak Mahindra Bank, and Tata Steel each garnered ₹1,500 crore in MF inflows.
- Coforge‘s digital transformation narrative has found favor with growth-focused funds.
- Kotak Mahindra Bank remains a key pick in the private banking space, despite regulatory overhangs.
- Tata Steel has benefitted from expectations of global recovery in the commodities cycle.
Larsen & Toubro (L&T) received ₹1,400 crore, indicating confidence in the infrastructure and capital goods theme. Meanwhile, IDFC First Bank and HCL Technologies attracted ₹1,200 crore each, affirming optimism in retail banking and mid-tier IT.
- Dr Reddy’s Laboratories rounded off the top 10 with ₹800 crore, highlighting renewed interest in the pharma sector amidst global health concerns.
Continued Interest in Broader Market Picks
Beyond the top 10, MFs added stakes in companies such as NTPC, Persistent Systems, Max Financial, SRF, and JSW Energy, indicating a diversified sectoral approach.
- Pharma and metal names like Lupin, Hindalco, and JSW Steel also saw increased allocations.
- Emerging and unlisted names like Swiggy, Hyundai Motor India, and Ather Energy made the cut, reflecting a tilt towards new-age and EV segments.
Some stocks, including RIL, TCS, HDFC Bank, UltraTech Cement, and Bajaj Finserv, have witnessed consistent MF buying for three consecutive months, confirming long-term conviction.
Equity MF Flows Stable Despite Net Inflow Dip
Though equity mutual fund inflows declined slightly by 3% to ₹24,269 crore in April (from ₹25,082 crore in March), Assets Under Management (AUM) for equity funds rose 3.8% to ₹30.5 lakh crore.
- The marginal dip did not reflect investor sentiment, which remained resilient amid global uncertainties and domestic volatility.
- Continued AUM growth suggests a strong SIP base and robust retail participation.
Pal Singh, CEO at ITI Mutual Fund, noted that despite geopolitical and market headwinds, investor confidence remains intact, as seen from the steady inflows and healthy portfolio diversification.
- Mutual fund flows into quality stocks across sectors point to a bottom-up investment approach.
- Strategic deployment in Q4 signals optimism about FY26 earnings recovery.