Jan'24, FIIs posted the highest outflows of USD3.1b since Feb'23. Conversely, DIIs recorded the sixth consecutive month of inflows at USD3.2b
FinTech BizNews Service
Mumbai, February 15, 2024: The Nifty, after recording an impressive 20% YoY gain in CY23, has begun the year on a cautious note, as per the Fund Folio Report by Motilal Oswal Financial Services.
Key observations
The month was characterized by extreme volatility, with the benchmark oscillating in a wide range (1,000 points) and pulling back from record highs to close flat MoM. In Jan’24, FIIs posted the highest outflows of USD3.1b since Feb’23. Conversely, DIIs recorded the sixth consecutive month of inflows at USD3.2b.
Total AUM of the MF industry scaled new highs to reach INR52.7t in Jan’24 (+3.9% MoM), primarily fueled by a MoM increase in AUM for equities (INR758b), liquid (INR639b), income (INR218b), balanced (INR193b), and arbitrage (INR99b) funds. Notably, AUM was up MoM across categories.
Equity AUM for domestic MFs (including ELSS and index funds) increased 3.2% MoM to INR24.6t in Jan’24, led by the slower pace of redemptions to INR321b (down 17.4% MoM) as the market indices (Nifty closed flat MoM) and also the sales of equity schemes were marginally up by 0.5% MoM to INR568b. Consequently, net inflows increased to INR247b in Jan’24 from INR177b in Dec’23.
Investors continued to park their money in mutual funds, with inflows and contributions in systematic investment plans (SIPs) reaching a new peak of INR188.4b in Jan’24 (up 7% MoM and 36% YoY).
Some interesting facts
The month saw notable changes in the sector and stock allocation of funds. On a MoM basis, the weights of Oil & Gas, Healthcare, PSU Banks, Telecom, Technology, Automobiles, and Real Estate increased, while that of Private Banks, Consumer, Metals, Retail, Chemicals, Textiles, and Media moderated.
Oil & Gas’ weight jumped to an eight-month high of 6.4% (+60bp MoM and +10bp YoY) in Jan’24.
Healthcare’s weight, after remaining range bound in the past six months, jumped to a 29-month high of 7.3% in Jan’24 (+40bp MoM, +100bp YoY).
Private Banks’ weight moderated for the seventh consecutive month to 17.1% (-110bp MoM, -160bp YoY) in Jan’24.
Consumer’s weight declined for the second consecutive month to 6.1% (-40bp MoM, -70bp YoY) in Jan’24 – the lowest since Oct’17.
In terms of value change MoM, divergent interests were visible within sectors: The top 5 stocks that saw a maximum increase in value were Reliance Industries (+INR141.6b), Bharti Airtel (+INR69.5b), Infosys (+INR52.7b), Sun Pharma (+INR46.5b), and ONGC (+INR29.4b).
