In February, the stock market witnessed notable shifts as mutual fund houses actively traded several mid-cap stocks. Yes Bank, IDFC First, and Bandhan Bank were among the most sought-after shares, reflecting a trend that investors closely monitor for insights into market dynamics. Understanding these investment patterns can provide valuable context for market enthusiasts looking to navigate their portfolios effectively.
Top Mid-Cap Stocks in February
A recent analysis by Motilal Oswal Financial Services reveals that mutual funds showed a strong preference for a select group of mid-cap stocks last month. The standout performers included:
- Yes Bank
- IDFC First Bank
- Prestige Estates
- Bandhan Bank
- AU Small Finance Bank
Mutual funds significantly increased their holdings in these companies, with Yes Bank attracting considerable attention. Despite a 13% drop in its share price, mutual funds purchased a remarkable 33.13 crore shares, marking a 33.4% month-on-month (MoM) increase.
In February 2025, IDFC First also saw a boost in mutual fund holdings, rising 18.1% to 45 crore shares, valued at about ₹2,630 crore. Other notable mentions include Prestige Estates, which saw a 15.2% increase in holdings, while Bandhan Bank and AU Small Finance Bank recorded MoM rises of 12.5% and 10.6%, respectively.
Notable Sells in the Market
Conversely, some public sector undertakings faced significant selling pressures. The stocks that saw the highest net selling included:
- HUDCO
- Mazagon Dock
- Voltas
- Muthoot Finance
- UPL
HUDCO experienced a dramatic 35.8% decline in mutual fund holdings, dropping to 1.64 crore shares. Similarly, Mazagon Dock saw a 13.1% dip, with holdings reduced to 0.44 crore shares.
In the case of Voltas, mutual funds decreased their stakes by 7.4%, leaving them with 5.98 crore shares valued at ₹7,890 crore. Both Muthoot Finance and UPL faced similar declines, with mutual fund stakes falling by 6.2% for each.
Conclusion
The trends observed in February underscore the volatility and shifting preferences within the mid-cap segment of the market. Investors should keep an eye on mutual fund activities as they often signal broader market sentiments. For more updates on investment trends and stock market insights, check out our latest articles and analyses.
