Top 10 Small Cap Mutual Fund Buys Last Month: A Comprehensive Analysis
The small cap segment has gained significant traction in the recent market rally. According to analyses by financial institutions such as ICICI Direct, mutual funds have shown strong interest in purchasing several small cap stocks. In the last month, these stocks have demonstrated notable performance, with the BSE Smallcap index up nearly 14%, and the Nifty Smallcap 100 index witnessing a 12% rise.
Key Players in Small Cap Mutual Fund Buys
Several mutual funds have been active in the small cap space, adding to the momentum. Notable buys by mutual funds include companies like TCNS Clothing Co Ltd, TV18 Broadcast, Magma Fincorp, Sundaram Finance Holdings, Bharat Dynamics, and many more.
The BSE Smallcap Index
The BSE Smallcap index, which is a component of the Bombay Stock Exchange (BSE), has seen a robust performance in recent months. According to reports, the index has gained nearly 14% in the past month. This surge in performance has made small cap stocks a favorite of investors and mutual funds alike.
Top Mutual Fund Companies in Small Cap Buys
Leading mutual funds such as SBI Small Cap, Tata Small Cap, DSP Nifty Small Cap, Nippon India Small Cap, and Axis Nifty Small Cap have been actively buying small cap stocks. These funds are well-regarded for their ability to find undervalued and potentially high-growth opportunities in the small cap segment.
Performance Data of Notable Small Cap Stocks
Company Name Mkt Cap CR Sector Fine Organic Industries 14851.69 CHEMICAL MANUFACTURING Jai Balaji Industries 14681.20 IRON STEEL NMDC Steel 14609.07 METAL MINING Poly Medicure 14505.83 MEDICAL EQUIPMENT SUPPLIESICICI Direct Report on Mutual Fund Activity
ICICI Direct's report on mutual fund activity for May 2021 provides a detailed insight into the buying and selling trends in the small cap segment. The top 10 buys by mutual funds include companies such as TCNS Clothing Co Ltd, TV18 Broadcast, Magma Fincorp, Sundaram Finance Holdings, and others. The list compiled by ICICI Direct also highlights companies like Solara Active Pharma Science, Butterfly Gandhimathi Appliances, E. I. D. Parry India, Avanti Feeds, Lux Industries, and Poly Medicure.
Top 10 Buys vs. Top 10 Sells in Small Cap Space
While the above companies saw significant buying interest, some companies faced selling pressure. Companies like Gufic Biosciences, Sterling and Wilson Solar, Praj Industries, Shilpa Medicare, Happiest Minds Technologies, NLC India, PTC India, Saregama India, Prince Pipes Fittings, and Valiant Organics saw mutual fund selling activity.
Conclusion
The strong performance of small cap stocks in the recent market rally has been a result of both investor confidence and active mutual fund participation. Investors looking to capitalize on this segment should consider the performance data and the list of top buys and sells compiled by reputable financial institutions. However, it is important to note that investing in small cap stocks carries risk, and thorough research is recommended before making any investment decisions.