The mutual fund industry invested a whopping Rs 22,563 crore in the Indian stock market in August, of which Rs 8,010 crore was invested in large-cap stocks.
Investing in large-cap stocks is considered relatively safer as these companies are typically market leaders in their specific industries with higher market capitalization.
Here are the top five large-cap companies across sectors that received the highest funds from fund houses in August.
Ambuja Cements
Ambuja Cements Limited, a major cement manufacturing company with a market cap of Rs 1.12 lakh crore, was founded by Suresh Kumar Neotia and Narotam Sekhsaria in 1983. Subsequently, Ambuja Cements entered a strategic partnership with Swiss-based building material company Holcim Group. However, India’s Adani Group recently took control of the company from Holcim.
In the first quarter (Q1) of fiscal 2023, Ambuja Cements’ profits soared 14.1 per cent to Rs 752 crores from the previous quarter. As of August, the mutual fund houses collectively owned 7.51 per cent or Rs 6,132.69 crore worth of Ambuja Cements stocks. In August alone, the fund houses invested Rs 1,217.79 crore in Ambuja Cements.
Kotak Mahindra Bank
Kotak Mahindra Bank Limited is an Indian financial and banking company with a market capitalization of Rs 3.83 lakh crore.
The company, founded by Uday Kotak in 1985, was initially called Kotak Capital Finance. The following year, Anand Mahindra and his father, Harish Mahindra, rebranded it as Kotak Mahindra Finance after taking a controlling stake in the company. In 2003, the company became the first non-banking finance company to get a banking license from the Reserve Bank of India (RBI), marking its first giant leap in the financial market. The company has acquired numerous firms since.
The fund houses collectively owned 9.51 per cent or worth Rs 36,181 crore stocks in Kotak Mahindra Bank as of August. In August, they invested Rs 777 crore in Kotak Mahindra Bank, the second-highest contribution by fund houses in large-cap stocks.
Maruti Suzuki India Limited
Maruti Suzuki India Limited is the biggest player in the country’s passenger car segment, with a market cap of Rs 2.80 lakh crore. Maruti Suzuki is considered a trusted brand by most Indian consumers. The company started as Maruti Udyog Limited, established by the government of India. Maruti Suzuki cars fuelled India’s tremendous growth in the automobile sector over the years.
The company’s profits stood at Rs 26,512 crore in the first quarter of fiscal 2023. The fund houses collectively owned 10.20 per cent or Rs 27,973 crore worth of stocks in the company as of August. In August, they invested Rs 717 crores, recording the third-highest capital inflows among large-cap stocks.
Zomato
Zomato is India’s biggest food delivery service provider. The company was founded by Deepinder Goyal and Pankaj Chaddah in 2008. Initially, Zomato started as a platform for users’ restaurant reviews, but later, it pivoted to food delivery. The company provides a platform for restaurants to advertise and cater to the Indian public.
Currently, Zomato’s market capitalization is Rs 53,310 crore. The company’s first-quarter FY23 profit was Rs 1,414 crore, representing an increase of 16.6 per cent compared to the previous quarter. The fund houses collectively owned 5.06 per cent or Rs 2309 crore worth of stocks in the company as of August. The fund houses invested Rs 663 crore in the company in August, accounting for the fourth-highest capital inflows among the large-cap stocks from fund houses.
National Thermal Power Corporation (NTPC) Limited
NTPC Limited is a public sector undertaking (PSU) founded by the government of India in 1975. The company’s core objective is to generate and distribute electricity to state electricity boards. The PSU pivoted towards oil and gas exploration in the subsequent period and is also transitioning towards green energy through its subsidiary NTPC Renewable Energy Limited.
Currently, the company’s market capitalization is Rs 1.65 lakh crore, and its Q1 FY23 profit stood at Rs 43,177 crore, an increase of 16.42 per cent. The fund houses collectively owned an 18.14 per cent stake or 28,842 crore in the company as of August. The fund houses invested Rs 628 crore in NTPC in August, making it the fifth-largest investment destination by fund houses among the large-cap stocks.
