Flexicap Funds Realign Portfolios in July 2026
Leading flexicap fund houses executed substantial portfolio adjustments in July 2026, reflecting a selective approach to the market. Data analyzed across 21 top fund houses reveals gross buying worth ₹15,122 crore and gross selling amounting to ₹12,178 crore.
Top Stocks Witnessing Increased Exposure
Among the stocks that saw the largest increase in exposure from flexicap funds, ICICI Bank led the pack with an additional ₹493 crore invested. HDFC Bank followed closely with a ₹365 crore increase. Other significant additions included PB Fintech (₹349 crore), Bharat Electronics (₹328 crore), and TVS Motor Company (₹313 crore).
Overall, fund managers boosted exposure in 194 stocks, channeling ₹9,220 crore into these positions. Additionally, fresh purchases were made in 85 stocks, totaling ₹5,902 crore. Notable fresh buys included Diamond Power Infrastructure (₹774 crore), Adani Enterprises (₹656 crore), and SBI Funds Management (₹454 crore). AU Small Finance Bank, Biocon, and Adani Energy Solutions also featured among new acquisitions.
Major Reductions and Exits
Conversely, Bajaj Auto experienced the steepest cut in holdings, with flexicap funds reducing exposure by ₹935 crore in July. Axis Bank saw a reduction of ₹423 crore, and Reliance Industries had its holdings trimmed by ₹390 crore. Interestingly, HDFC Bank appeared on both sides of the ledger, with some funds increasing exposure while others reduced it by ₹264 crore, indicating divergent strategies among managers. Max Financial Services also saw a significant reduction of ₹251 crore.
Fund managers decreased exposure in 157 stocks, totaling ₹7,363 crore. Furthermore, 83 stocks were completely exited, accounting for ₹4,815 crore. Key complete exits included Tata Power (₹460 crore), Infosys (₹399 crore), and Cholamandalam Investment and Finance Company (₹354 crore). Tata Steel, Hindalco Industries, JB Chemicals and Pharmaceuticals, and Larsen & Touro were also among the stocks fully divested.
Sectoral Shifts: Inflows and Outflows
Sectors Attracting Capital
- Capital Markets: Highest net inflow at ₹962 crore across eight stocks.
- Electrical Equipment: Followed with ₹824 crore.
- Pharmaceuticals: Attracted ₹810 crore.
- Metals and Minerals: Received ₹706 crore.
- Banks: Saw ₹599 crore of net inflows.
Aerospace and Defence, Realty, and Retailing also recorded positive capital flows during the month.
Sectors Facing Outflows
- Petroleum Products: Highest net outflow at ₹640 crore.
- Insurance: Followed with ₹476 crore.
- Industrial Products: Saw an outflow of ₹449 crore.
- Construction: Recorded an outflow of ₹399 crore.
- Ferrous Metals: Experienced an outflow of ₹397 crore.
The July data underscores a nuanced approach by flexicap fund managers, focusing on selective repositioning rather than broad-based market shifts. Capital was predominantly directed towards capital markets and industrial themes, while exposure was reduced in sectors like petroleum, insurance, and specific large-cap stocks.