Two Large-Cap Stocks See September Sell-Off by Fund Managers: One from Tata Group

September Market Performance: Nifty Gains, But Some Stocks Face Selling Pressure

In September, the NSE Nifty50 index rose by over 2%, fueled by large-cap stocks. However, not all large caps enjoyed this momentum. Mutual fund managers reduced their stakes in two prominent stocks—ICICI Bank and Tata Motors—triggering significant selling pressure in these companies.

ICICI Bank: Mutual Funds Turn Sellers

ICICI Bank saw a massive sell-off in September, with fund managers offloading approximately Rs 3,060.49 crore worth of shares. This represented a net sale of 24,461,644 shares. This came as a surprise to many investors, given that ICICI Bank had seen consistent buying interest during July and August.

Several prominent mutual funds, including SBI Nifty 50 ETF, Mirae Asset Large Cap Fund, and Axis Bluechip Fund, were among those that trimmed their holdings in the bank. Despite the sell-off, ICICI Bank’s stock still gained about 3.5% in September.

Major Funds Selling ICICI Bank:

• SBI Nifty 50 ETF
• Mirae Asset Large Cap Fund
• Axis Blue Chip Fund
• ICICI Pru Balanced Advantage Fund
• Aditya Birla SL Frontline Equity Fund

Tata Motors: Disappointing JLR Sales 

Tata Motors, part of the Tata Group, faced significant selling pressure in September, with mutual fund managers selling Rs 1,433.7 crore worth of shares. The net quantity sold was 13,747,314 shares. In contrast, August had seen strong buying interest in Tata Motors as mutual fund holdings had risen sharply.

However, in September, the sentiment turned sour. JLR’s production was also hit by supply chain disruptions, particularly a shortage of high-grade aluminum. As a result, Tata Motors’ stock declined by over 12% during the month.

Key Factors for Tata Motors’ Decline:

• Jaguar Land Rover’s disappointing Q2FY25 sales
• Supply chain disruptions affecting production

Conclusion: A Temporary Setback or a Long-Term Trend?

While both ICICI Bank and Tata Motors faced selling pressure in September, it’s important to consider whether this is a temporary shift or part of a larger trend. ICICI Bank’s fundamentals remain strong despite the sell-off, while Tata Motors is grappling with operational challenges. Investors should monitor these stocks closely as we move into the final quarter of the year.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.