Mutual funds bet across market caps in July 2026: Torrent Pharma, Biocon and Diamond Power among top stock buys

Mutual funds made notable purchases across large-, mid-, and small-cap stocks in July, with fresh buying seen in sectors ranging from pharmaceuticals and banking to technology, healthcare, and financial services.

The buying trend shows that fund managers across different fund houses were positive on select stocks. While large-cap stocks are generally associated with greater stability, mid- and small-cap stocks offer higher growth potential but hold a relatively higher risk.

Data compiled by Value Research and shared in an X post highlights the stocks where active mutual funds increased their holdings the most by value in July 2026 compared with June 2026 portfolio disclosures.

Source: Value Research; based on July 2026 vs June 2026 portfolio disclosures. Passive funds excluded. Purchases valued at month-end prices.

Mutual fund buying in large-cap stocks was led by banking and financial services, with Axis Bank , Kotak Mahindra Bank , SBI Funds Management , and Union Bank of India among the key purchases by fund managers.

However, Torrent Pharmaceuticals topped the overall large-cap list, with mutual funds buying shares worth ₹ 7,014 crore in July. Adani Enterprises followed with purchases of ₹ 6,743 crore.

Axis Bank and Kotak Mahindra Bank saw buying worth ₹ 3,522 crore and ₹ 3,262 crore, respectively.

Source: Value Research; based on July 2026 vs June 2026 portfolio disclosures. Passive funds excluded. Purchases valued at month-end prices.

Financial services and consumer services featured prominently among mid-cap purchases. Biocon recorded the highest buying at ₹ 3,234 crore, followed by PB Fintech at ₹ 2,875 crore.

Lenskart Solutions and Swiggy recorded purchases of over ₹ 1,000 crore each, while Meesho saw buying worth ₹ 860 crore.

Source: Value Research; based on July 2026 vs June 2026 portfolio disclosures. Passive funds excluded. Purchases valued at month-end prices.

Small-cap buying was led by Diamond Power Infrastructure, where mutual funds bought shares worth ₹ 1,605 crore in July 2026.

Jupiter Life Line Hospitals and Sterlite Technologies followed, with purchases of ₹ 1,126 crore and ₹ 1,108 crore, respectively.

The data highlights how mutual fund purchases in July were spread across market segments and sectors, reflecting the moves made by fund managers during the month.