Mutual funds up play in banks, NBFCs and capital goods

As the economy enters a high growth phase, fund managers are gobbling up non-banking finance stocks along with capital goods and banks as they expect credit demand to accelerate.

Mutual fund investment data for the quarter ended June 2019 show domestic fund managers incrementally preferred banks, capital goods and NBFCs, while taking money out from oil & gas, auto and pharma sectors.

Mutual funds weight in oil & gas companies declined by 88 bps in the three-months ended June 2019 while their weight in banks have gone up by 80 bps, according to data compiled by Emkay Global.