Mutual Funds Net Buyers in 66% of Nifty 50 Stocks in May 2025; Capital Goods and Auto Sectors in Focus
Mutual funds significantly increased their equity exposure in May 2025, turning net buyers in 33 of the 50 Nifty stocks. The capital goods and automobile sectors emerged as the biggest beneficiaries of this shift in investment strategy, indicating a bullish outlook driven by strong fundamentals and macroeconomic tailwinds.
📈 Key Highlights
66% of Nifty 50 Stocks Witness Net MF Buying: Out of the 50 blue-chip stocks, mutual funds increased their holdings in 33 stocks.
Top Gainers by Sector:
Capital Goods: Renewed focus on infrastructure spending boosted investor sentiment.
Auto Sector: Positive sales growth, margin improvement, and strong export demand attracted fresh MF inflows.
Stocks With Highest MF Interest:
Larsen & Toubro (L&T) – Leading the capital goods pack with a notable rise in institutional holdings.
Mahindra & Mahindra, Tata Motors – Key auto players with rising mutual fund allocations.
🔍 Sector-Wise MF Trends
Capital Goods:
Continued government capex and private investments in infrastructure have led to rising demand for engineering and construction firms.
Stocks like L&T, Siemens, and ABB India have seen increased mutual fund exposure.
Auto:
The passenger and commercial vehicle segments have rebounded strongly.
Tata Motors, Maruti Suzuki, and M&M remain top MF picks for their improving earnings and product pipelines.
Financials and FMCG:
Financials saw mixed action, with mutual funds trimming stakes in some private banks.
FMCG stocks witnessed muted interest, reflecting high valuations and margin pressures.
💼 What This Means for Investors
The data indicates a strong institutional preference for cyclical and infrastructure-linked sectors, suggesting confidence in India's domestic growth story. Investors may consider aligning portfolios with sectors that are attracting sustained institutional inflows.
📊 Top 5 Stocks with Increased MF Holdings in May 2025
| Stock | Sector | MF Holding Change |
|---|---|---|
| Larsen & Toubro | Capital Goods | +1.2% |
| Tata Motors | Auto | +0.9% |
| M&M | Auto | +0.7% |
| Siemens India | Capital Goods | +0.6% |
| NTPC | Power | +0.5% |
🔐 Expert Insights
Market analysts suggest that mutual funds are positioning ahead of expected industrial growth, and the inflow pattern hints at a potential long-term structural rally in these sectors.
❓ FAQ: Mutual Fund Activity in Nifty 50 – May 2025
Q1: How many Nifty 50 stocks saw net buying by mutual funds in May 2025?
A: Mutual funds were net buyers in 33 out of 50 Nifty stocks, i.e., 66%.
Q2: Which sectors saw the highest increase in mutual fund holdings?
A: Capital goods and auto sectors witnessed the most significant rise in holdings.
Q3: Why are mutual funds focusing on capital goods?
A: Government infrastructure initiatives and rising private sector capex have made capital goods an attractive sector.
Q4: Which auto stocks are gaining mutual fund attention?
A: Tata Motors, Mahindra & Mahindra, and Maruti Suzuki have seen increased institutional interest.
Q5: Is this trend expected to continue in the coming months?
A: With strong economic indicators and corporate earnings, institutional buying in cyclical sectors is likely to sustain.
Published on: June 13, 2025
Uploaded by: Pankaj
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