In February, MFs reduced their holding in PSU banks, capital goods, and autos while increasing their exposure to PVT banks, NBFCs, healthcare, and telecom.

Mutual funds reduced their exposure in sectors like capital goods, technology, automobiles, consumer, oil & gas, utilities, PSU banks, retail, and infrastructure while increasing their stake in industries like private banks, NBFCs, healthcare, telecom, and metals in February, when the benchmark Nifty fell by almost 6%.

 At 18.5%, private banks still held the highest sector weightage. Technology came in second with 9.3 percent, followed by cars with 8.1 percent and healthcare with 7.6 percent.

However, the weight of capital goods reduced to 6.8%, down 60 basis points month over month and 90 basis points year over year. Additionally, mutual funds decreased their holdings of technology equities to 9.3 percent. The drop was about 20 basis points year over year and 30 basis points month over month. Mutual fund weighting for auto equities also fell to 8.1 percent, a 19-month low. This was about 10 basis points year over year and 30 basis points month over month.