Mutual Funds Offload Major Holdings: Top Stocks Sold in September 2025

Domestic Mutual Funds executed substantial portfolio realignments in September 2025, divesting significant positions across market capitalizations. The selling spree witnessed high-value exits from established names in the financial services, automobile, and industrial sectors, reflecting strategic shifts in fund manager outlooks and possible profit-booking after recent rallies.

Large-Cap Exits: Financial Giants Face the Axe
The large-cap segment saw the most aggressive selling by value, with mutual funds offloading Rs 2,740.86 crore worth of Axis Bank shares. The private sector lender topped the sell list as funds reduced exposure by 2.51 crore shares. This marked departure from Axis Bank comes amid evolving sector dynamics and fund houses rebalancing their financial services exposure.

Maruti Suzuki India followed closely with Rs 2,354.02 crore in net sales, as funds trimmed 55.27 lakh shares from their portfolios. The automobile major faced selling pressure from multiple large fund houses including ICICI Prudential and HDFC Mutual Fund, who aggressively reduced their stakes in September. Bajaj Finance, another financial services heavyweight, witnessed outflows of Rs 2,075.19 crore as 2.21 crore shares changed hands.

Tata Motors Passenger Vehicles experienced selling worth Rs 1,039.52 crore, with funds liquidating 1.54 crore shares amid concerns about the auto sector's near-term prospects. Rounding off the top five was retail giant Trent, which saw Rs 743.92 crore worth of shares exit mutual fund portfolios, representing 1.40 crore shares in net quantity sold.

Mid-Cap Massacre: Auto and Banking Bear the Brunt
The mid-cap space witnessed even more dramatic reductions in terms of quantity. Hero MotoCorp led the mid-cap exodus with Rs 1,661.26 crore in sales, as funds dumped 3.11 crore shares of the two-wheeler manufacturer. Multiple fund houses including SBI Mutual Fund were active sellers in this counter during September.

IndusInd Bank emerged as the second-largest mid-cap casualty, with funds offloading Rs 1,333.80 crore worth of shares representing 1.80 crore in net quantity. The private lender's elevated valuations and competitive pressures in the banking space likely prompted fund managers to book profits.

UNO Minda, an auto components maker, saw Rs 467.4 crore worth of selling as 3.60 crore shares exited mutual fund books. Fortis Healthcare faced Rs 415.17 crore in redemptions with 4.41 crore shares sold, while Hitachi Energy India rounded out the top five with Rs 383.42 crore in net sales.

Small-Cap Shake-Up: Industrial Names Under Pressure
In the small-cap universe, Tega Industries topped the sell list with Rs 438.78 crore worth of shares sold, representing 2.30 crore in net quantity. HDFC Mutual Fund made a complete exit from this industrial products company in September, signaling waning confidence in its near-term prospects.

Himadri Speciality Chemical witnessed the highest quantity of shares sold in the small-cap space, with 7.80 crore shares amounting to Rs 348.56 crore exiting fund portfolios. Tata Chemicals experienced Rs 273.12 crore in selling as 2.90 crore shares found new owners outside the mutual fund ecosystem.

National Securities Depository faced Rs 247.63 crore in outflows with 2.00 crore shares sold by funds. Amber Enterprises India completed the top five with Rs 174.18 crore worth of sales, as 2.20 crore shares were offloaded by multiple fund houses including Kotak and Nippon India, both of which made complete exits from this consumer durables player.

Strategic Repositioning or Market Concerns?
The September selling pattern reveals a clear trend of profit-booking in financial services and automobile stocks, which had delivered strong returns in preceding months. Fund managers appear to be rotating capital away from these sectors toward other opportunities, with simultaneous buying observed in stocks like Reliance Industries, TCS, ICICI Bank, and SBI during the same period.

The elevated selling in automobile and ancillaries across all market cap segments suggests sector-specific concerns, possibly linked to demand uncertainties or margin pressures. Meanwhile, complete exits by major fund houses from stocks like Tega Industries, Amber Enterprises, and RBL Bank indicate decisive portfolio clean-ups rather than mere trimming.

Despite these significant redemptions, mutual fund inflows remained robust in September 2025, with active Equity Funds attracting Rs 30,422 crore during the month. This suggests the selling was tactical rebalancing rather than bearish sentiment, as fund managers repositioned portfolios ahead of the second-quarter earnings season while maintaining overall equity allocations. The combination of strategic exits and fresh deployments reflects the dynamic nature of professional fund management in navigating India's evolving market landscape.

Disclaimer: This article is for informational purposes only and does not constitute financial advice; investors should consult a qualified advisor before making any investment decisions.