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Summary: From speciality chemicals to logistics and healthcare, fund managers quietly loaded up on five interesting names, while dumping a few popular favourites like IEX and Lemon Tree Hotels.
The small-cap universe slipped marginally in August, but that didn’t deter mutual funds from going shopping. Fund managers continued to selectively increase exposure to small-cap names, signalling confidence in the space.
So, let’s look at the five small-cap companies that saw a considerable buying interest last month, and where selling pressure was visible.
1. Thirumalai Chemicals
Motilal Oswal Mutual Fund bought a fresh stake in Thirumalai Chemicals, taking its holding to 5.76 per cent. ITI Mutual Fund also entered the counter, signalling rising interest in this speciality chemical player. However, ICICI Prudential Mutual Fund trimmed its stake.
2. The India Cements
Kotak Mahindra Mutual Fund and SBI Mutual Fund used the dip to accumulate India Cements shares. ICICI Prudential Mutual Fund, on the other hand, reduced its exposure, indicating a mixed view across fund houses.
3. Mahindra Logistics
This logistics and supply-chain solutions provider saw heavy buying from Nippon India, Kotak Mahindra, Tata and UTI fund houses.
4. Medi Assist Healthcare Services
This healthcare benefits administrator was a hot favourite in August. Fund houses of Kotak Mahindra, ICICI Prudential and Aditya Birla Sun Life were among the big buyers. On the other hand, Sundaram Mutual Fund and Bajaj Finserv Mutual Fund exited the counter completely.
5. Centum Electronics
This niche electronic solutions player saw both its existing mutual fund investors, Bandhan and HDFC, increase their stakes, reflecting conviction in its growth prospects.
Some of the other small-cap names in the most-bought list include Vardhman Textiles, Sanofi India, Aavas Financiers, M&B Engineering and Cello World.
Where funds were selling
On the flip side, Indian Energy Exchange (IEX) saw notable selling, with Parag Parikh Financial Advisory Services being the notable seller. Lemon Tree Hotels witnessed exits by WhiteOak and Franklin Templeton India. Meanwhile, Jyothy Labs and DCB Bank also figured among the most-sold small-cap names last month.
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