General

equities: Banks, autos and IT top buys by fund managers in May

equities: Banks, autos and IT top buys by fund managers in May
Major mutual funds bought shares of lenders, automakers and select IT companies in May as they held onto divested stocks amid uncertainty about the near-term market outlook.

In May, the Nifty fell 3%, partly due to sell-offs in IT stocks that averaged 20-25% below their highs. Some fund managers used the lower price levels to buy stocks, such as:

and .

Fund managers also bought underperforming auto stocks such as

and Mahindra & Mahindra, where growth has been dampened by a chip shortage and the rebound in demand has been relatively subdued.

agencies

Major banks have also bought in at cheaper valuations. Some fund managers also bought in from select companies that have gained market share, such as and , which are seen as the biggest beneficiaries of the reopening transactions