How MFs churned large caps, mid-caps, and small caps in February 2026

MUTUAL FUNDS - LARGE CAP CHURN IN FEBRUARY 2026

As per the SEBI definition, large caps are defined as the 100 biggest listed stocks by market cap and corresponds with the Nifty 100. Let us start with large cap stocks where mutual funds added significant positions in February 2026. The mutual funds added 1,202 Lakh shares of Eternal Ltd, 397 Lakh Shares of Infosys Ltd, 389 Lakh shares of Canara Bank, 331 Lakh shares of Tata Motors Passenger Vehicles, 126 Lakh shares of HCL Technologies, 51 Lakh shares of Hindustan Zinc, 33 Lakh shares of Tata Consumer Products, 25 Lakh shares of Adani Green Energy, and 23 lakh shares of Adani Enterprises. In addition, mutual funds also picked small quantities of ABB India. On the buy side, there was a strong bet on IT revival.

What about mutual fund selling in large caps in February 2026? The selling was largely focused on BFSI and oil related stories. There was heavy selling of 574 Lakh shares in Jio Financial, 545 Lakh shares of Indian Oil Corporation, 403 lakh shares of Wipro Ltd, 264 Lakh shares of Vedanta Ltd, 232 lakh shares of Union Bank of India, 42 Lakh shares of HDFC AMC, 33 Lakh shares each of IRFC and Lodha Developers. In addition, mutual funds sold smaller quantities in Polycab India and Mazagon Dock Shipbuilders. The selling was, in a sense, driven by the geopolitical risks in the Middle East and West Asia.

MUTUAL FUNDS - MID CAP CHURN IN FEBRUARY 2026

Mid-caps are defined by SEBI as companies ranked 101st to 250th on the market cap scale. Let us first look at mid-cap buying in February 2026. Overall, mutual funds added 1,125 Lakh shares of Bharat Heavy Electricals Ltd (BHEL), 452 Lakh shares of Steel Authority of India Ltd (SAIL), 196 Lakh shares of PB Fintech (Policybazaar), 187 Lakh shares of NALCO, 180 Lakh shares of IndusInd Bank, 131 Lakh shares of Hexaware Technologies, 120 Lakh shares of Coforge Ltd, 46 lakh shares of IRCTC Ltd, and 18 Lakh shares of Waaree Energies. In addition, mutual funds also bought smaller quantities of IREDA Ltd in February 2026.

How about major mid-cap selling candidates in February 2026? Mutual Funds sold 351 Lakh shares of Aditya Birla Finance, 286 Lakh shares of Bank of India, 191 Lakh shares of GMR Airports, 78 Lakh shares of Godrej Properties, 52 Lakh shares of HUDCO Ltd, 45 Lakh shares of BSE Ltd, and 43 Lakh shares of SJVN Ltd. In addition, February 2026 also saw smaller quantities of selling in Godfrey Phillips Ltd. The sell side was a stock-specific story.

MUTUAL FUNDS – SMALL CAP CHURN IN FEBRUARY 2026

Let us finally look at small caps in February 2026, which are companies ranked beyond 250 in the market cap rankings. For February 2026, mutual funds added 171 Lakh shares of ALLCARGO Logistics, 108 Lakh shares of Kansai Nerolac Paints, 87 Lakh shares of Sanghi Industries, 43 Lakh shares of Aditya Infotech, 32 Lakh shares of Avanti Feeds, 15 Lakh shares of Pennar Industries, and 14 Lakh shares of Trualt Bioenergy. In addition, MFs purchased smaller quantities of Sarda Energy & Minerals, Jana Small Finance Bank, and Ramakrishna Forgings during the month of February 2026.

What about MF selling in small caps in February 2026? Mutual funds sold 142 Lakh shares of Jamna Auto Industries, 59 Lakh shares of Star Cement, 52 Lakh shares of Aegis Logistics, 16 Lakh shares Transformers & Rectifiers, 16 Lakh Shares of Apollo Micro Systems, 14 Lakh shares of Oswal Pumps, and 12 Lakh shares of Ramco Systems. In addition, February 2026 also saw mutual funds selling smaller quantities in Route Mobile, NSDL Ltd, and Tata Elxsi.

The month of February 2026 saw aggressive buying in the large cap space, especially in the IT space. Buying in the small and mid-caps was relatively subdued in February 2026.