HDFC Bank, SBI to Urban Company: Here's what mutual funds bought and sold the most amid stock market crash in MarchSignalling a preference for disciplined and long-term equity investing, retail and high-net worth (HNI) investors bought the dip in March as flows into equity-oriented mutual funds jumped to an eight-month high.
The equity funds recorded strong net inflows of ₹40,500 crore last month, up sharply from ₹26,000 crore in February, a 56% increase, even as the Indian stock market's benchmark indices posted their worst monthly fall in six years amid the US-Iran war-led selloff.
FII-led extreme sell-offs, this time driven by geopolitical tensions, are increasingly being used as buying opportunities, said Abhilash Pagaria, Head - Nuvama Alternative & Quant. He added that a consistent pattern is emerging where domestic investors are deploying funds during sharp market weakness and booking profits during phases of excessive strength, reflecting a more disciplined and counter-cyclical approach.
Among the equity fund categories, flexi-cap mutual funds recorded the most inflows and reached a new peak as they garnered ₹10,100 crore from investors. Mid-cap and large & mid-cap fund categories also saw the highest-ever monthly inflows, and for small-caps, it was the second-highest month in terms of flows at ₹6,300 crore (slightly below July 2025's ₹6500 crore).
These inflows were spread across different names, with large-cap banking names emerging as key beneficiaries. On the flip side, certain names from the gas and IT sectors were among the top sells by the fund houses. Here's a category-wise breakup:
Amid the sharp selloff seen in March, large-cap bank stocks saw heavy buying, according to data from Nuvama Research. HDFC Bank, ICICI Bank and State Bank of India (SBI) were among the top stock picks of funds as they witnessed inflows worth ₹15,800 crore, ₹6,800 crore and ₹4,800 crore, respectively.
Last month was particularly challenging for HDFC Bank as investors sold off stocks amid fears of corporate governance lapses following the exit of chairman Atanu Chakraborty over "ethical" concerns. However, domestic funds doubled down their bets on the lender amid the 17.18% fall as they believe the long-term outlook for India's biggest private lender remains intact. The commentary from management and the RBI's assurance helped assuage concerns.
In the large-cap space, Power Grid, Grasim and Apollo Hospitals were the biggest selloffs as mutual funds offloaded stocks worth ₹8,000-1,100 crore in these names.
In the mid-cap segment, Anthem Biosciences — which listed in July last year — was the most-preferred bet as it saw buying worth ₹1100 crore in March. HDFC MF, SBI MF and Axis MF were the top buyers. Another recently-listed player, Urban Company, also emerged as a top buy, with ₹900 crore in inflows, followed by Central Mine Planning at ₹700 crore.
Petronet LNG, however, saw massive ₹600 crore outflows in March by mutual funds. It was followed by KIE Industries and Coforge, where fund houses sold stocks worth ₹500 crore and ₹300 crore, respectively.
Sedemac Mecha, with inflows worth ₹900 crore, Omnitech Engg ( ₹200 crore) and Ujjivan Small Fin Bank ( ₹200 crore), were the top small-cap stocks that mutual funds bought the most in March. Shaily Engineering, Home First Finance and TeamLease saw the most selling of up to ₹100 crore.
Disclaimer: This story is for educational purposes only. We advise investors to check with certified experts before making any investment decisions.
Saloni Goel has over nine years of experience as a business journalist, with a strong track record of covering the financial markets. Over the course of her career, she has reported extensively on global and domestic equities, IPO market activity, commodities, and broader macroeconomic trends. Her reporting reflects a keen eye for detail, data-driven analysis, and the ability to spot emerging themes early.
At Mint, Saloni has been part of the markets team for nearly two years, where she currently works as Chief Content Producer. In this role, she plays a key part in shaping market coverage, driving editorial strategy, and ensuring timely, accurate, and insightful reporting across. She has been closely involved in breaking news coverage and in crafting stories that help decode the complex financial developments.
Before joining Mint, Saloni worked with some of India’s leading business newsrooms, including The Economic Times and Business Standard. Throughout her career, she has worn multiple hats—ranging from reporting and editing to contributing in-depth features and identifying new storytelling formats and market trends.
Her experience in fast-paced digital newsrooms has given her an edge in simplifying complex market concepts without losing analytical depth. Outside of work, Saloni enjoys reading books and spending time with her pet.