Indian mutual funds are deploying an unprecedented cash pile to erect a defensive wall against historic selling by foreign institutional investors (FIIs), pumping approximately Rs 1.07 lakh crore into just 20 powerhouse stocks during the first four months of calendar year 2026.
Data from active mutual fund schemes reveals that domestic money managers are boldly defying global market volatility and geopolitical overhangs by anchoring their portfolios heavily in large-cap private lenders and selective IT heavyweights, using the recent market corrections to scoop up institutional favorites at attractive valuations.
ICICI Bank alone absorbed ₹19,253 crore of fresh mutual fund buying in the January-April period, with fund managers raising their holdings from 98.49 crore shares to 113.27 crore, shows data compiled by Elara Securities.
HDFC Bank drew ₹15,038 crore, the second-largest allocation, while Bharti Airtel attracted ₹8,890 crore. Together, the top three buys account for nearly ₹43,000 crore, or roughly 40% of the total deployment in the top 20 names.
