MFs add stocks with focus on likely rate cuts, cheaper oil

Mutual fund managers in August eyed stocks that could benefit from interest rate cuts and lower crude prices. With oil prices on a downward trajectory, fund managers accumulated paints and tyre stocks such as Asian Paints, Kansai Nerolac, Ceat and Apollo Tyres. Ahead of the start of the festive season, expectations of rural demand picking up led some funds to buy Mahindra & Mahindra.

With a rate cut in India likely following the Fed’s move expected in September, a section of fund managers bought banks and NBFCs selectively. Kotak, IndusInd, Chola Finance and Aavas Financiers were among their picks.