Arvind Ltd soared 100% in 12 months. Guess who's buying?

Wondering what shares to buy? Maybe you should check out what mutual funds are buying to get some clues on what well-informed investors are up to.

Firstpost compiled a list of companies that have seen a steady increase in their mutual fund holdings over the last four quarters. Of the 19 companies on which domestic institutional investment data until the end of September is available, we found Arvind Ltd, Aurobindo Pharma, Divi’s Laboratories, Kajaria Ceramics were some of the companies saw an increase of 4-8 percentage points in Domestic Institutional Investor holdings.

The biggest jump in mutual fund holdings was seen in Arvind Ltd: shareholding increased by a sharp 8.23 percentage points at the end of the September-ending quarter from the same period a year ago. Happily for the shareholders, the stock surged by more than 100 percent over the next 12 months to Rs around 104.

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[caption id=“attachment_110478” align=“alignleft” width=“380” caption=“Mutual Funds increased their stake in 19 companies.Reuters”]  [/caption]

Pharma companies saw some action too as Aurobindo Pharma and Divis Lab reported an increase in mutual fund holding by 4-5 percentage points. Infosys, India’s second-largest software exporter, also posted a 1.2 percentage point increase in DII holding. Among banks, Karur Vysya and State Bank of India (SBI) saw an increase of 3 percentage points and 1.04 percentage points, respectively.

Check out the list of companies that have seen an increase in their MF holdings in the table below.

[caption id=“attachment_110438” align=“alignleft” width=“452” caption=“Table”]  [/caption]

However, not all stocks saw positive movements in prices because of sustained domestic fund purchases. Only Arvind, Kajaria Ceramics, Gujarat State Fertilisers and Chemicals, ACC, Ambuja, NIIT and Divi’s managed to post good price gains over the past 12 months; the rest are trading below their year-ago levels.