Mutual funds displayed a significant reshuffling of their portfolios in October 2026, with notable increases in holdings for certain large-cap stocks while reducing exposure in others. According to DotMR analysis, mutual funds were net buyers in 32 of the 50 Nifty stocks, accounting for 64% of the benchmark's constituents. This trend extended to mid- and small-cap stocks as well, with mutual funds being net buyers in 62 of the Nifty Midcap 100 constituents and 61 of the Nifty Smallcap 100 constituents, representing 62% and 61% of the respective indices.
Large-Cap Stocks: Rising Stars and Falling Giants
Among large-cap stocks, Max Healthcare emerged as the standout performer, with mutual fund shareholdings increasing by 15.6% month-on-month to reach 2.10 crore shares. This surge reflects a growing confidence in the healthcare sector, particularly as the demand for healthcare services continues to rise post-pandemic.
ITC also saw a substantial increase in mutual fund holdings, rising 13.3% to 235.41 crore shares. The company’s diverse portfolio, including FMCG, hotels, and paperboards, has made it a resilient choice for investors. BSE recorded a 7% increase, bringing mutual fund holdings to 6.94 crore shares, indicating a positive outlook on the stock exchange's performance.
Conversely, HCL Technologies faced a decline in mutual fund shareholdings, which fell by 3.5% to 24.92 crore shares. The tech sector's volatility and concerns over global demand may have influenced this decision. Bajaj Auto and Coal India also saw reductions in holdings, with declines of 3.4% and 2.5%, respectively.
Mid-Cap Stocks: Emerging Leaders
In the mid-cap segment, Rail Vikas Nigam stood out with a remarkable 25.4% increase in mutual fund shareholdings, reaching 0.63 crore shares. This growth can be attributed to ongoing infrastructure projects and government initiatives aimed at enhancing rail connectivity across the country.
Following closely was Tube Investments, which saw an 18.4% increase in mutual fund holdings to 3.17 crore shares. The company’s focus on diversified manufacturing and innovation has attracted investor interest. Lodha Developers and Persistent Systems also recorded increases, with holdings rising by 17.3% and 9.8%, respectively.
On the selling side, Patanjali Foods experienced the steepest decline, with mutual fund shareholdings plummeting by 47.1% to 1.52 crore shares. This drastic reduction may reflect concerns over the company's growth trajectory and market competition. Suzlon Energy and LIC Housing Finance also faced declines of 14.7% and 8.2%, respectively.
Small-Cap Stocks: Significant Movements
Cemindia Projects led the small-cap segment with an astonishing 237.2% increase in mutual fund shareholdings, reaching 1.38 crore shares. This surge is indicative of growing investor confidence in the construction and infrastructure sectors, particularly as the government ramps up spending in these areas.
Other notable small-cap stocks included Godrej Properties, which saw a 9.5% increase in holdings, and Indian Hotels Company, which experienced an 8.0% decline. The fluctuations in these stocks highlight the dynamic nature of the small-cap market, where investor sentiment can shift rapidly.
Summary of Mutual Fund Activity in October 2026
The mutual fund activity in October 2026 underscores a strategic shift among fund managers as they navigate the complexities of the current economic landscape. The following table summarizes the key changes in mutual fund shareholdings across large-, mid-, and small-cap stocks:
The data reflects a cautious yet optimistic approach by mutual funds, as they seek to capitalize on growth opportunities while managing risks associated with market volatility. As the economic landscape continues to evolve, these trends will be closely monitored by investors and analysts alike.
| Forensic Metric / Statutory Dimension | Mainstream Wire Benchmark | DotMR Corroborated Record & Direct Impact |
|---|---|---|
| Max Healthcare Holdings (crore) | 2.10 | +15.6% |
| ITC Holdings (crore) | 235.41 | +13.3% |
| HCL Technologies Holdings (crore) | 24.92 | -3.5% |
| Rail Vikas Nigam Holdings (crore) | 0.63 | +25.4% |
| Patanjali Foods Holdings (crore) | 1.52 | -47.1% |
