Fund managers turned selective in August as US interest rates rose. They picked large-cap stocks like Coal India and LIC that offered safety and good value. Many funds also bought into pharmaceutical firms and NBFCs. This cautious approach showed how experts navigated market risks while keeping their portfolios steady and secure.
Amid the backdrop of increasing US interest rates in August, fund managers proceeded with caution, prioritizing large-cap stocks that offered favorable valuations coupled with safety margins. Their approach in mid and small-cap investments was selective, choosing firms like LIC, Coal India, and notable pharmaceutical entities. There was also a surge in funding for NBFCs and research organizations in this period.
Fund managers adopted a cautious approach in August amid concerns over rising US interest rates and a large pipeline of IPOs.
In the large-cap space, fund managers were selective, buying stocks where recent declines had made valuations more attractive and offered a margin of safety. LIC, Coal India, metal stocks such as Hindalco and JSW Steel, and pharmaceutical companies including Dr Reddy's Laboratories and Sun Pharma were among the stocks that found favour.
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In the mid- and small-cap segments, which contributed to more than half of the recent inflows into equity schemes, fund houses remained stock-specific. Funds were seen buying stocks such as Rubicon Research and Viyash Scientific, as well as NBFCs including Tata Capital and Piramal Finance.