Indian mutual funds buy KFin, SBI Cards

KFin Technologies saw the sharpest accumulation. Mutual fund ownership rose to 27% in September 2026 from 12.4% a year earlier, with funds buying about 2.5 crore shares over the past year. SBI Cards also drew steady interest, with mutual fund holding increasing to 13% from 10.1% over the same period, alongside purchases of 2.8 crore shares. The other names on the list were Rainbow Children’s Medicare, Indus Towers, Timken India and Mahindra & Mahindra.

The buying is notable because it is happening against a prolonged market downturn, when retail participation often weakens and many portfolios are forced into defense. In that environment, four straight quarters of accumulation suggest mutual funds see these stocks as quality franchises that can compound through the cycle rather than trade as short-term momentum bets.

For KFin Technologies, the investment case is tied to the broader expansion of India’s mutual fund and capital-market ecosystem, which can support recurring revenue as assets under service grow. For SBI Cards, the appeal is more cyclical: a consumer-credit business that has been under pressure at times, but still offers operating leverage if spending remains resilient and asset quality stays manageable. The stock’s recent trading pattern also hints at stabilization after a weak patch, with the price recovering from a low of 6.88 on Oct. 7 to 7.20 on Nov. 3, while its 50-day moving average has recently converged with the share price.

The list also reflects a broader portfolio shift among active managers. When markets are under pressure, mutual funds often prefer liquid, institutionally relevant names where they can average in without stretching valuations too far. Financial infrastructure, consumer finance, telecom towers and healthcare tend to attract that kind of capital because they offer either defensive earnings or long-run growth visibility.

The bull case is that domestic funds are identifying future leaders before the market turns, and that persistent buying through weakness can provide a floor under these names. The bear case is that mutual fund accumulation alone does not guarantee near-term outperformance, especially if the macro backdrop stays soft or earnings do not catch up with the ownership build-up.

For investors, the key takeaway is that fund managers are signaling preference for select domestic compounding stories even as the broader market remains volatile. If the slump extends, these names may continue to attract incremental institutional support; if sentiment improves, they are the kind of stocks that can outperform as liquidity returns.