New Delhi, May 23: A report released on Saturday reveals that the Indian stock market saw an investment of ₹73,639 crores in April, significantly higher than in March. Most of this investment flowed into large-cap companies through Systematic Investment Plans (SIPs).
According to the report by Valuem Capital, investors shifted their focus towards value stocks in the PSU and BFSI sectors while distancing themselves from technology shares.
The report indicates that Indian investors are prioritizing disciplined strategies over aggressive investments until the broader stock market shows positive year-on-year growth.
Total investments in April reached ₹25,931 crores, surpassing the previous month. Following the volatility at the end of March, there was a noticeable improvement in investment across various asset classes. After significant withdrawals in the money market and fixed income segments, investments began to flow back in.
Additionally, investments in large-cap funds decreased to ₹17,756 crores, down by ₹10,911 crores compared to the previous month.
Despite the underperformance, large-cap funds remained the top choice for investors. This category recorded an 8% year-on-year decline, marking the weakest performance across all segments.
The report stated, “Investors continue to maintain regular SIP investments in underperforming funds, reflecting the maturing SIP culture in India.”
A significant shift was observed in dynamic equity strategies, where withdrawals of ₹15,242 crores turned into investments of ₹19,755 crores. This represented the largest monthly change across all equity categories.
Arbitrage funds contributed significantly to this change, with a total of ₹33,173 crores in holdings. This shift was attributed to changes in the strategies of institutional investors.
In factor-based investments, only the ‘growth’ category performed positively, yielding returns of 2.2% in April and 2.9% year-on-year, along with new investments of ₹1,022 crores.
Conversely, focused funds experienced the most significant decline, with withdrawals amounting to ₹1,008 crores.
The BFSI sector showed weak performance across various themes; however, substantial investments continued to flow into this sector and broader thematic funds.
Within BFSI, the capital markets segment performed the best, delivering returns of 18.1% year-on-year and 7.4% month-on-month, which piqued investor interest.
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