Mixed Cues: HDFC Bank, ICICI Bank, INFY See MF Buys; SBI, BAJFINANCE Sold

Domestic mutual funds significantly increased their positions in HDFC Bank, ICICI Bank, and Infosys during February, signaling strong institutional conviction in these large-cap leaders. Conversely, they offloaded shares of State Bank of India (SBIN) and Bajaj Finance (BAJFINANCE), indicating a shift in their portfolio allocations away from these specific counters.

This data provides crucial insights into institutional sentiment and smart money flows within the Indian market. Mutual fund activity often acts as a leading indicator for retail investors, reflecting professional fund managers' views on sector prospects and individual stock valuations. Their overweight positions in specific sectors like Pharma, E-commerce, and Capital Goods also highlight potential growth areas.

The buying in HDFC Bank (HDFCBANK), ICICI Bank (ICICIBANK), and Infosys (INFY) could provide support and potentially drive further upside for these stocks, reinforcing their status as institutional favorites. The selling in State Bank of India (SBIN) and Bajaj Finance (BAJFINANCE) might exert downward pressure or signal a period of consolidation for these stocks, warranting caution from investors. The overweight status in Pharmaceuticals & Healthcare, E-commerce, Consumer Durables, Capital Goods, and Agrochemicals & Petrochemicals suggests these sectors could see sustained institutional interest.

Traders should monitor the performance of HDFC Bank, ICICI Bank, and Infosys for sustained buying interest and potential breakouts. Conversely, observe SBI and Bajaj Finance for any further institutional selling or signs of price stabilization. Keep an eye on the broader market sentiment and any shifts in RBI policy or global cues that could influence financial and IT sectors, as these could alter mutual fund strategies.

• •HDFC Bank, ICICI Bank, Infosys were among top mutual fund buys in February.
• •SBI and Bajaj Finance saw selling by mutual funds in February.
• •Top five sectors where domestic mutual funds are overweight compared with BSE 200 include Pharmaceuticals & Healthcare, E-commerce, Consumer Durables, Capital Goods and Agrochemicals & Petrochemicals.