Mutual funds go big on private banks in January amid market volatility

Group 1 - Mutual Funds (MFs) invested a total of ₹40,514 crore in equities in January, with three banking stocks accounting for 45% of net equity purchases [1] - Major private-bank stocks, particularly HDFC Bank, have seen renewed investor interest due to softened valuations after a subdued post-Covid performance [2] - The underperformance of private banks relative to public-sector banks became particularly noticeable in 2025 [2] Group 2 - In addition to the three banking stocks, Biocon and Reliance Industries experienced strong buying interest in January [2] - Conversely, Hindalco Industries, MCX, Vedanta, State Bank of India, and Polycab were among the most sold stocks during the same period [2] - In the midcap and smallcap sector, Amagi Media Labs, Shadowfax Technologies, Aavas Financiers, Amber Enterprises, and Dalmia Bharat attracted the highest MF investments in January [3]