Mutual Funds Increase Holdings in ITC and TCS: Read Below to Know More

A recent report has brought to light a significant development in the market-mutual funds have shown substantial interest in large-cap stocks ITC and Tata Consultancy Services (TCS) during March. The report reveals that mutual funds have made majorly purchases, with an estimated Rs 7,700 crore worth of ITC shares and Rs 5,700 crore worth of TCS shares.

ICICI Prudential Leads ITC Purchases

Among the funds acquiring ITC, ICICI Prudential emerged as the top buyer, accumulating shares valued at Rs 4,892 crore. Other notable investors included DSP MFs and Kotak MF, which purchased shares for Rs 432 crore and Rs 377 crore, respectively. Aditya Birla Sun Life MF and Axis MF also participated, acquiring shares worth Rs 306 crore and Rs 356 crore, respectively.

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Mutual Fund Stake in ITC Expected to Rise

While the official figures for the March quarter haven't been released yet, available data indicates mutual funds held a 9.66% stake in ITC at the end of December. Given the recent buying activity, analysts expect this figure to be higher for the March quarter. Despite delivering an 8% return over the past year, ITC's performance lagged behind the Nifty FMCG index, which generated returns exceeding 16% during the same period.

TCS Outperforms with Strong Financials

TCS Outperforms with Strong Financials, similar to ITC, data for mutual fund holdings in TCS for the March quarter is yet to be released. However, at the end of December, mutual funds held a collective 3.51% stake in the company. TCS shares have consistently outperformed the broader market, delivering extreme returns exceeding 25% in the past year, a trend that aligns with the returns generated by both the Nifty IT index and the Nifty index during the same period. Meanwhile, TCS recently reported strong financial results for the January-March quarter, with revenue reaching Rs 61,237 crore, representing a 3.5% year-on-year increase. Profit for the same quarter also rose by 9.1% year-on-year to Rs 12,434 crore, painting a promising picture for the future of TCS shares.

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