MF August 2026 Moves: Top 5 Stocks Bought & Sold in India

Indian mutual funds continued to actively churn their equity portfolios in August 2026, with large-cap, mid-cap and small-cap schemes showing distinct buying and selling patterns. According to data compiled from Livemint, fund managers rotated positions across market capitalisations as they navigated valuation concerns and sector-specific opportunities. The moves offer a useful window into where institutional money is flowing — and where it is exiting — in the Indian stock market.

Across large-cap funds, the top five stocks bought during the month included ICICI Bank, Larsen & Toubro, Bharti Airtel, Reliance Industries and Infosys. On the selling side, large-cap funds trimmed positions in HDFC Bank, Tata Consultancy Services, Kotak Mahindra Bank, ITC and Hindustan Unilever. Analysts say the buying interest in financials and infrastructure names reflects confidence in domestic growth, while the reduction in some consumer and IT heavyweights points to profit-booking after recent rallies.

In the mid-cap space, mutual funds added the most to Max Healthcare, Indian Hotels, Federal Bank, Cummins India and Persistent Systems. The top five mid-cap stocks sold included Vodafone Idea, Yes Bank, GMR Airports, Indraprastha Gas and Ashok Leyland. Portfolio managers appear to be favouring healthcare, hospitality and select financials in the mid-cap segment, while exiting some turnarounds and cyclical names where near-term earnings visibility remains uncertain.

Analysts say the August 2026 portfolio moves show fund managers are selectively bullish on domestic-facing sectors while staying cautious on export-linked and high-valuation pockets.

Among small-cap funds, the top five stocks bought were Kalyan Jewellers, Coforge, Blue Star, Carborundum Universal and Jyoti CNC Automation. The top five small-cap stocks sold were Suzlon Energy, BSE, HUDCO, IRCON International and NBCC (India). The small-cap buying skews towards consumer discretionary, capital goods and IT services, whereas the selling is concentrated in public-sector undertakings and stocks that have seen sharp run-ups.

The August 2026 data underscores a clear preference for quality and earnings visibility across market caps. In large-caps, funds are rotating from consumption and IT into banking and infrastructure. In mid-caps, healthcare and hospitality are in favour, while telecom and some financial turnarounds are being pared. In small-caps, the focus is on consumer discretionary and capital goods, with PSU names facing the axe. Investors tracking mutual fund portfolios should note that these are month-end disclosures and may not reflect intra-month changes. For a deeper dive into mutual fund strategies and stock-level insights, visit markettomoney.co.in.