Indian markets see rise in mutual fund inflows and IT sector gains

The Indian financial sector is seeing significant activity across mutual funds and the IT industry. Despite market weakness in September, net investment in active equity mutual funds rose by 17.4 percent compared to August, reaching 42,200 crore rupees. This growth was largely driven by a nearly 2.7-fold increase in lump-sum investments, which rose to 9,700 crore rupees. Nuvama Research maintains a positive outlook on the mutual fund industry, identifying HDFC AMC and CAMS as preferred stocks.

Simultaneously, the Nifty IT Index surged by 3 percent, fueled by strong performance from major technology firms. HCL Tech emerged as a primary driver after reporting a 21.18 percent annual increase in consolidated net profit to 5,132 crore rupees for the July-September quarter. The company's growth was attributed to advanced AI operations and favorable tax conditions. Other major players, including TCS and Infosys, also saw significant gains, supported by a strengthening US dollar.