The country’s largest mutual fund, SBI Funds Management or SBI Mutual Fund, was on a buying spree amid the February sell-off when the benchmark BSE Sensex index fell more than 3%. Broader indices The BSE Midcap and Smallcap indices also lost around 5% and 9%, respectively. Market watchers believe the war between Russia and Ukraine, selling off by Foreign Institutional Investors (FIIs) and concerns about rising inflation weighed on sentiment.
Data available with Primemfdatabase showed that the fund manager picked stocks across all sectors and categories, including large cap, mid cap and small cap during the month. In banking, he added more than 1 crore of shares in private sector lender ICICI Bank and public sector bank State Bank of India (SBI) last month. SBI Funds Management also bought an additional 64 lakh shares of HDFC Bank, 41 lakh shares of Federal Bank and 33 lakh shares of Axis Bank during the month.
Despite strong third-quarter results, bank stocks fell as much as 10% in February amid fears over macro risk. Emkay Global Financial Services believes that the recent correction provides a good entry point into quality stocks like ICICI Bank, Axis Bank, SBI and Federal Bank.
In his latest letter to investors, Vinay M Tonse, Managing Director and Chief Executive of SBI Mutual Fund, said: “News of the dispute has kept the markets on edge. We have seen several bouts of volatility over the past two weeks, which could likely continue in the days to come. »
“Apprehension and anxiety are a natural reaction to any uncertainty. These fears are further heightened when our hard earned money is on the line. However, throughout history we have seen several events that have destabilized the markets in the short term, but in the long term the markets have shown resilience . It means opportunities exist amid the chaos,” he added.
The mutual fund also bought around 98 lakh shares of FMCG’s ITC principal. The fund managers also acquired more than 40 lakh shares of Infosys, Nuvoco Vistas Corp and NTPC. Other major purchases by SBI Mutual Fund were Wipro, Cipla, HDFC, Reliance Industries, Muthoot Finance, Power Grid, Zee Entertainment, Vodafone Idea, Bharti Airtel, HDFC Life Insurance and Bank Bank. He bought more than 20 lakh shares of these companies last month.
On the other hand, he has sold more than 10 lakh shares in IDFC First Bank, Zomato, FSN E-Commerce Ventures, Elgi Equipments, Tata Power, Punjab National Bank, Ambuja Cement, ONGC, Bank of Baroda, Tata Motors, City Union Bank and Electronic Bharat.
SBI Mutual Fund had total assets under management (AUM) of Rs 6,38,536 crore as of February 28, 2022, according to IDBI Capital Markets. On the other hand, its AUM equity stood at Rs 3,72,088 crore.
Inside and outside
Vedant Fashions, Equitas Small Finance Bank, Metropolis Healthcare, Indiabulls Housing Finance, Intellect Design Arena and Syngene International emerged as new entrants to SBI MF’s portfolio. On the other hand, it completely left players like Escorts, Nazara Technologies, CE Infosystems, Polycab India and Chambal Fertilizers & Chemicals.