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India’s mutual fund industry turned decisively bullish in July 2025, pumping over ₹56,500 crore into equities and reshuffling portfolios across large, mid, and small caps. The month saw a clear pivot toward growth-oriented sectors like IT, banking, and capital goods, while funds trimmed exposure to aviation, cement, and commodity-linked plays. Let’s unpack the most significant moves.
Sectoral Shifts: Where the Money Flowed
- Software Services surged to the top of the buy list, with mutual funds investing ₹1,60,986 million
Infosys, TCS, HCL Tech, Tech Mahindra, and Info Edge were the primary beneficiaries
Smaller IT players like LTIMindtree and Birlasoft saw selling pressure
- PSU Banks attracted ₹1,13,499 million in net buying
SBI led the charge, followed by Canara Bank, Indian Bank, Bank of Maharashtra, and Bank of Baroda
Union Bank, Bank of India, and PNB saw reduced holdings
- Private Banks added ₹1,03,314 million in inflows
Axis Bank, Kotak Mahindra Bank, ICICI Bank, AU Small Finance Bank, and RBL Bank gained traction
HDFC Bank, IndusInd Bank, and DCB Bank faced modest trimming
- NBFCs saw ₹78,184 million in buys
Top picks included HDB Financial Services, Cholamandalam Investment, Bajaj Finance, and L&T Finance
Power Finance Corp, BSE, and MCX were sold off
- Other sectors with strong buying momentum included:
Capital Goods: CG Power, BEL, HAL, PG Electroplast
Auto Components: M&M, Maruti Suzuki, Hero MotoCorp
Pharma & Healthcare: JB Chemicals, Lupin, Laurus Labs
Realty: Oberoi Realty, Lodha, Phoenix Mills
Consumer: ITC, Godrej Consumer, Britannia
Consumer Durables: Dixon, Voltas, Amber Enterprises
Stocks That Got the Axe
- Ports & Logistics saw the steepest outflows at ₹21,234 million
Interglobe Aviation, Container Corp, Cochin Shipyard, Mahindra Logistics were among the exits
- Cement sector lost ₹20,072 million
ACC, Grasim, Ambuja, JK Cement were trimmed
- Agro/Petrochemicals and AMC NBFCs saw notable exits
Solar Industries, UPL, HDFC AMC, Nippon AMC were among the top sell-offs
- Metals & Mining, Utilities, and Coal sectors also faced selling pressure
Hindalco, NTPC, Coal India, and Tata Power were reduced
- Media and Telecom stocks were pared down
Zee, PVR Inox, Airtel, Indus Towers saw exits
Large Cap Moves: Big Bets and Big Cuts
- Mutual funds added 1,300 lakh shares of SBI, 270 lakh of CG Power, and 177 lakh of HCL Technologies
- TCS, Chola Investments, Lodha Developers, Info Edge, Havells India, and Adani Green Energy also saw additions
- On the flip side, Indian Oil Corp, Union Bank, Hindalco, Ambuja Cements, and Interglobe Aviation were sold heavily
Mid Cap Maneuvers: Financials and Consumer Plays
- Vodafone Idea, Ashok Leyland, Yes Bank, Canara Bank, and L&T Finance led the buying spree
- Swiggy Ltd, Oberoi Realty, and 360 One WAM also saw fresh interest
- HPCL, IREDA, UPL, LIC Housing Finance, and ACC were among the top mid-cap exits
Small Cap Signals: Selective and Strategic
- Ola Electric, Devyani International, RBL Bank, and South Indian Bank were added
- Sequent Scientific, Hindustan Copper, and NBCC (India) faced selling pressure
Global Tech Frenzy: Foreign Holdings Surge
Indian mutual funds continued their buying spree in US tech giants
- Alphabet saw a ₹742 crore rise in holdings
- Microsoft, Amazon, Meta, Nvidia, and Apple all saw increased positions
- New positions were initiated in Petrobras (Brazil), Amphenol, Adobe, and Broadcom
- Netflix, EPAM Systems, and Cognizant saw reductions
Key Takeaway
July 2025 marked a high-conviction month for India’s mutual funds, with aggressive allocations to tech, banking, and consumer sectors. The reshuffling signals a strategic tilt toward defensives and high-growth plays, while trimming exposure to cyclical and underperforming sectors. Retail investors would do well to track these moves as indicators of institutional sentiment.
Sources: Moneycontrol, India Infoline, MSN Money, Economic Times, ET Now, Zee Business
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