ITC, Tata Steel, PNB, ICICI Bank, Meesho and Swiggy Among Mutual Funds' Top Buys in December

In December 2025, mutual funds made notable portfolio changes, increasing stakes in select large-cap, mid-cap and small-cap stocks, as per PhillipCapital report. Key additions included companies across financials, FMCG, metals, and internet platforms, while they pulled back from some major IT and healthcare stocks. 

Large-Cap Picks: ITC, ICICI Bank, Tata Steel Among Top Buys 

Mutual funds increased their holdings in several large-cap companies, such as ITC Ltd., Tata Steel Ltd., ICICI Bank Ltd., Power Grid Corporation of India Ltd., and Punjab National Bank. These stocks saw higher volume-based buying during the month.  

Conversely, Infosys Ltd., HDFC Bank Ltd., Eternal Ltd. (Zomato parent), Vedanta Ltd., and Canara Bank were among the top exits in the large-cap space. 

Mid-Cap Movements: Focus on Meesho and Swiggy 

In the mid-cap segment, mutual funds showed notable interest in recently listed Meesho Ltd. and Swiggy Ltd. Other mid-cap additions included Bank of Maharashtra, Suzlon Energy Ltd., and Yes Bank.  

On the other hand, fund managers exited positions in Multi Commodity Exchange of India Ltd., National Aluminum Company Ltd., Indus Towers Ltd., Hindustan Petroleum Corporation Ltd., and Groww (Billionbrains Garage Ventures Ltd.). 

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Small-Cap Adjustments: Buys in Belrise and Wakefit 

Small-cap stock additions featured Belrise Industries Ltd., Ujjivan Small Finance Bank Ltd., Aequs Ltd., Wakefit Innovations Ltd., and Park Medi World Ltd. However, HFCL Ltd., Indian Energy Exchange Ltd., NCC Ltd., Zee Entertainment Enterprises Ltd., and Sammaan Capital Ltd. were among the companies that saw reduced fund interest. 

Sectoral Trends: Auto and Financials Gain, Healthcare Slips 

Mutual funds directed more capital towards the automotive and financial sectors. Stocks like Mahindra & Mahindra Ltd., Bharat Forge Ltd., Ashok Leyland Ltd., Tube Investments of India Ltd., and SKF India Ltd. were included under automotive.  

In the financial space, ICICI Bank, ICICI Prudential AMC, Bank of Maharashtra, Nuvama Wealth, and Shriram Finance Ltd. received attention.  

Healthcare stocks saw a decline in holdings, including Lupin Ltd., Cipla Ltd., Sun Pharmaceutical Industries Ltd., Divis Laboratories Ltd., and Torrent Pharmaceuticals Ltd. 

Conclusion 

During December 2025, mutual funds showed preference for large-cap financials and industrials while reducing exposure to IT and healthcare sectors. Key names such as Meesho and Swiggy gained prominence across mid-cap portfolios as funds diversified sectorally. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.