On a monthly basis, investments fell by 140 basis points from 8.3% in January to 6.9% in February, while on an annualized basis, investments fell by 9.5% to nearly 260 basis points in February 2025, the report further showed.
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The report further highlighted that in February, sectors such as technology, consumer goods, telecom, e-commerce, and chemicals saw moderate MoM weighting. The technology sector was the one that witnessed the maximum decline in value as it saw a 16.1% decline month-on-month.
Stocks that witnessed the maximum MoM decline in value were Infosys, TCS, HDFC Bank, Tech Mahindra, HCL Tech, Coforge, Persistent Systems, Bharti Airtel, Eternal, and Wipro.
Infosys saw a 16.6% fall in value, and 11 funds added to the stock, while nine sold from their portfolios. TCS saw a decline of 13.9% in value and 11 funds added the stock to their portfolios, while nine sold out of their portfolios.
HCL Technologies saw a 13.3% fall in value, and 12 funds added the stock to their portfolios, while eight sold the stock in February. Wipro saw a fall of 7.2% in value and 11 funds added the stock to their portfolios, while nine sold it from their portfolios. The BSE 200 had 7.5% allocation to the technology sector against 6.9% by mutual funds. Some fund houses, such as Aditya Birla Sun Life Mutual Fund, Franklin Templeton Mutual Fund, ICICI Prudential Mutual Fund, Motilal Oswal Mutual Fund, PPFAS Mutual Fund, Tata Mutual Fund, and UTI Mutual Fund, had higher allocations than the BSE 200.
The report further indicates that the technology sector remains among the top 10 sector allocations of most fund houses. In February, PPFAS Mutual Fund added 20.68 lakh shares of TCS.
According to the monthly portfolio, significant share gains in HCL Technologies, Infosys, and Tata Consultancy Services (TCS). PPFAS included 4.3 million shares of HCL Tech, 4.2 million shares of Infosys, and 1.9 million shares of TCS as the sector recorded a brutal 20% monthly crash, its biggest fall in nearly two decades.
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Foreign institutional investors sharply reduced their exposure to IT stocks in February, selling shares in two phases. They raised about Rs 11,000 crore worth of IT stocks in the first half of the month and another Rs 5,993 crore from February 15 to 28, according to NSDL data.
Jefferies downgraded several stocks, including Infosys, HCL Tech and Emphasis to hold, and TCS, LTIMindtree and Hexaware to underperform, cutting price targets by up to 33%.
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