In August, several big mutual funds sold a large number of HDFC Bank shares, worth around ₹8,200 crore. Data shows that 23 out of 41 funds reduced their investments in the bank. Well-known sellers included Kotak Mahindra Mutual Fund, Quant Mutual Fund, and SBI Mutual Fund.
This was the first time mutual funds sold HDFC Bank shares in a month after buying for seven straight months. From January to July, mutual funds bought HDFC Bank shares worth ₹45,000 crore. However, in August, they sold around 5.06 crore shares.
Kotak Mahindra Mutual Fund sold the most, offloading about 2.56 crore shares worth ₹4,188 crore. Quant Mutual Fund sold all of its shares, amounting to 1.73 crore shares worth ₹2,827 crore. SBI Mutual Fund sold 68 lakh shares for ₹1,110 crore. Other funds like Aditya Birla Sun Life Mutual Fund, Invesco Mutual Fund, Axis Mutual Fund, and Tata Mutual Fund also sold shares.
On the other hand, some funds are still confident about HDFC Bank. ICICI Prudential Mutual Fund bought 1.19 crore shares worth ₹1,947 crore, making it the biggest buyer. UTI Mutual Fund and Nippon India Mutual Fund also bought shares, worth ₹251 crore and ₹238 crore, respectively.
Overall, in August, 41 mutual funds held about 153.87 crore shares of HDFC Bank, worth ₹2.51 lakh crore, which was a bit less than ₹2.59 lakh crore in July. It’s not clear why some mutual funds sold such large amounts, but HDFC Bank’s stock has not performed well in 2024, dropping by 2.5%. Meanwhile, its competitors like State Bank of India, ICICI Bank, and Axis Bank have seen their stocks rise this year.
In August, MSCI announced it would increase HDFC Bank’s weight in its Global Standard Index. This change will allow more foreign investments in HDFC Bank. The first adjustment took place after MSCI’s August review, with a second adjustment planned for November.
While some mutual funds have sold their shares, HDFC Bank remains India’s largest bank by market value, and its long-term prospects look strong with increasing foreign investments and inclusion in major global indices.
Stay informed with our financial updates, stocks, bonds, commodities. Get global & political insights. Follow us & enable notifications for the latest updates.
One thought on “Mutual Funds Sell Rs 8,200 Crore Worth of HDFC Bank Shares in August Amid Market Shifts”