MFs go long on new-age companies, beaten-down stocks

Top mutual funds lapped up beaten-down shares of recently-listed companies in March. SBI Mutual Fund, ICICI Prudential, Nippon India and UTI bought One97 Communications — parent of Paytm, which has been under selling pressure since its listing on November 18. The stock had fallen to a low of Rs 520 on March 23, more than 75% below its IPO price of Rs 2,150. Since then, it has recovered 32% to Rs.688.

During the month, these funds also bought afresh shares of PB Fintech (Policybazaar), Zomato Star Health, which too were out of favour on Dalal Street.

Amidst rising inflows into equity funds, fund managers bet on the ‘re-opening trade’, buying shares of airlines, hotels, malls, entertainment and logistics. Prominent companies such as Indian Hotels, KPR Mill, V-Mart Retail, Sundaram Finance, Bharat Forge, PVR, and Barbeque-Nation Hospitality have been bought by fund managers of leading fund houses for their March 2022 portfolio.