Infosys, TCS, Coforge shares see MF buying in May; Wipro, Brightcom, KPIT, Persistent attract selling

Four of top five IT stocks namely Tata Consultancy Services (TCS), Infosys, HCL Technologies and Tech Mahindra saw a jump in mutual fund (MF) exposure in May, as the institutional category trimmed stakes in many midcap and smallcap IT stocks such as KPIT Technologies, Cyient, Persistent Systems, Mphasis, Mastek and Brightcom Group, among others.

Infosys was mutual funds' top IT pick in May. Fund managers bought a net Rs 1,545.18 crore worth of Infosys shares for the month as they upped stake in the IT firm to 69,07,80,485 shares (16.65 per cent) from 67,86,74,752 shares (16.36 per cent). In total, mutual funds owned Rs 91,066 crore worth Infosys shares as of May 31 against Rs 85,021 crore as on April 30.

Coforge was the second best bet with a net buy of Rs 964 crore. MFs upped stake in this midcap IT firm to 27.29 per cent in May from 23.56 per cent in April. TCS came in third with Rs 608 crore net buy, as per data compiled by PRIME Database.

In LTIMindtree, MFs upped stake to 7.10 per cent from 6.85 per cent. Tech Mahindra (13.18

per cent from 12.94 per cent),  Birlasoft (22.93 per cent from 20.23 per cent), Tata Elxsi (2.27 per cent from 1.82 per cent), Affle India (9.32 per cent from 7.87 per cent), HCL Technologies (8.07 per cent from 8.05 per cent) and L&T Technology Services (2.10 per cent from 1.98 per cent) were other IT stocks where MFs increased exposure to in the month gone by. In total, MFs raised stakes in 17 technology stocks for the month.

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(Source: PRIME Database)

On the flip side, there were 15 other IT stocks which saw cut in MF exposure. Funds cut stake in Wipro to 2.53 per cent from Rs 2.66 per cent. They still owned Rs 5,611.09 crore worth Wipro shares as of May 31. In Cyient, MFs reduced exposure to 21.47 per cent from 23.08 per cent. In Persistent Systems, the MF stake fell to 23.27 per cent from 23.93 per cent.

KPIT Technologies (7.62 per cent from 7.76 per cent), Oracle Financial (3.71 per cent from 3.81 per cent), Rategain Travel (12.53 per cent from 13.14 per cent), Mphasis (12.81 per cent from 12.89 per cent) and Mastek (1.12 per cent from 1.53 per cent) were among other stocks seeing cut in MF exposure.

 

(Source: PRIME Database)

May had seen foreign portfolio investors selling IT shares to the tune of Rs 891 crore.

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