Watch out these top 5 small-cap stocks in which Mutual Funds have increased stake; Do you hold any?
Institutional investors are key players in the Indian stock market, with their investment decisions impacting stock prices. These stocks are poised to benefit from India's strong growth and demographics.
Mutual funds are bullish on India, investing heavily in its stock market. This is a positive sign for the Indian economy, as it reflects confidence in the country's strong economic growth, young population, and digitalization drive. The government's reforms to boost growth and attract foreign investment are also supportive. Mutual funds are investing in a variety of sectors, including power, financials, consumer discretionary, telecom, and healthcare, which are poised to benefit from India's long-term growth potential.
Institutional investors are those who invest money on behalf of others, such as pension funds, mutual funds, insurance companies, hedge funds, and sovereign wealth funds. They are classified as foreign (FIIs) or domestic (DIIs). Both play a vital role in the Indian stock market, influencing stock prices.
In recent months, FIIs and DIIs have been increasing their stake in various stocks. This is likely due to a number of factors, including the strong growth of the Indian economy, the attractive valuations of many Indian stocks, and the government's focus on reforms.
Institutional investors are increasing their stake in several stocks, including:
Sula Vineyards: India's largest wine producer, with sales and profits growing at a CAGR of 8 per cent and 158 per cent over the past three years, respectively.
SJS Enterprises: A self-adhesive label manufacturer with sales and profits growing at a CAGR of 11 per cent and 12 per cent over the past three years, respectively.
PG Electroplast: A leading electronics manufacturing services provider with sales and profits growing at a CAGR of 28 per cent and 141 per cent over the past three years, respectively.
Voltamp Transformers: A leading electrical transformer manufacturer with sales and profits growing at a CAGR of 17 per cent and 31 per cent over the past three years, respectively.
TD Power Systems: A leading solar power equipment manufacturer with sales and profits growing at a CAGR of 19 per cent and 71 per cent over the past three years, respectively.
These stocks are attractive to FIIs and DIIs due to their strong growth potential, supported by India's strong economic growth and favourable demographics. Investors should keep these stocks in there watchlist.
Disclaimer: The article is for informational purposes only and not investment advice.