Market Overview - The Indian equity market has experienced significant volatility over the past year, with a notable rebound occurring in the last six months, particularly from March 2025, following a steep correction from the late-September 2024 peak [1] - During the six-month period ending September 17, 2025, the Nifty 50 Total Return Index (TRI) increased by 14%, while the Nifty Midcap 150 TRI and Nifty Smallcap 250 TRI rose by 21% and 24%, respectively [1] Mutual Fund Activity - The rebound in the market coincided with steady mutual fund inflows, with managers investing nearly ₹2.5 lakh crore into equities during the same period [2] - This influx of liquidity, combined with market volatility, provided active managers with opportunities to acquire quality stocks at attractive prices [2] Midcap Stock Selection - Active fund managers have consistently added specific midcap stocks to their portfolios over the past six months, focusing on those with significant increases in equity scheme participation from February to August 2025 [4] - The top three midcap stocks identified are Swiggy, One97 Communications, and IDFC First Bank [5] Individual Stock Performance - The number of active equity schemes holding Swiggy increased from 90 in February 2025 to 144 in August 2025, with new investments from HDFC Flexi Cap, Axis Midcap, and Nippon India Multi Cap [5] - One97 Communications, the parent company of Paytm, saw its active equity scheme count rise from 51 to 103 during the same period, with new entries from Motilal Oswal Large & Midcap, Canara Rob Mid Cap, and UTI Multi Asset Allocation [6] - IDFC First Bank experienced a significant increase in active schemes, rising from 9 in February 2025 to 48 in August 2025, with notable new investors including Sundaram Mid Cap, Franklin India Mid Cap, and Bandhan Value Fund [6]