Market Overview: Mutual Fund Activity in August
In August, mutual funds showcased significant buying activity, purchasing a staggering ₹35,600 crore worth of equities. Concurrently, foreign institutional investors (FIIs) were net sellers, offloading shares worth ₹2,700 crore. This scenario has created an environment of abundant liquidity, with approximately ₹20,000 crore flowing into the market every month. As a result, mutual fund companies are capitalizing on this momentum by launching New Fund Offers (NFOs) focusing on innovative themes. This level of investment marks a notable shift in market dynamics, with fund managers shifting capital from underperforming stocks to high-growth opportunities, fueling the ongoing market boom.
Sector Insights: Large, Mid, and Small Cap Stocks
Among large-cap stocks, investor enthusiasm has surged around companies like Zomato, Tax Consultant, Trent, and Maruti Suzuki. Notably, mutual funds have invested around ₹4,200 crore in various Adani Group companies, with an additional ₹900 crore in Adani Enterprises. In the midcap segment, stocks such as Kalyan Jewellers, Delhivery, and Emphasis are witnessing substantial buying from mutual funds. Additionally, small-cap stocks like Zen Technologies and Aster DM Health have become popular picks, while weaker performers like NACL and Laurus Labs are experiencing sell-offs.
Stock Highlights: Notable Performers
Stove Kraft
Stove Kraft’s stock has reportedly closed at ₹938.10 on September 16, reflecting a significant gain of 7.7 percent. Brokerage firm Emkay has recommended a buy on Stove Kraft shares, citing attractive valuations as a key factor. The company is expanding its distribution network and enhancing its presence in e-commerce and modern retail, which may lead to a long-term rerating of the stock. However, some analysts express caution, pointing out that the capex cycle may be tapering off, along with potential negative impacts from the current import situation.
Macrotech Developers
Macrotech Developers saw its stock rise by 3.6 percent, closing at ₹1,275 on September 16. Recommended by brokerage firm Nomura, the stock’s bullish appeal is underpinned by anticipated strong earnings and successful business development goals. The ongoing upgrade of the Palava project is poised to enhance both sales volumes and pricing. Conversely, market bears highlight concerns regarding a possible slowdown in residential real estate and potential delays in infrastructure improvements in Palava.
Max Healthcare Institute
Max Healthcare Institute’s stock closed at ₹933, a 2.7 percent increase as of September 16. The company announced plans to acquire a significant stake in Jaypee Healthcare, valuing the deal at ₹1,660 crore. This acquisition is projected to increase Max’s total bed count from 4,300 to 5,000, with a specific goal of raising capacity in Noida to 1,200 beds. Forecasts suggest that Jaypee Healthcare’s sales could reach ₹590 crore in FY26 and ₹710 crore in FY27, representing about 5 percent of Max’s overall sales. However, market analysts also caution that competition from Medanta’s hospital in Noida may pose challenges for Max Healthcare’s future performance.
