According to Motilal Oswal Financial Services' Fund Folio report, Suzlon Energy, Patanjali Foods, National Aluminium Company (NALCO), Steel Authority of India (SAIL), and Indian Renewable Energy Development Agency (IREDA) emerged as the favorite midcap picks of mutual funds in April 2026. Patanjali Foods led with the highest month-on-month net buying, witnessing a 27.8% jump in holdings during the month. Suzlon Energy followed with a 6% increase in MF holdings compared to March 2026, while 360 One WAM, NALCO, SAIL, and IREDA also featured among the top 5 midcap stocks that saw heavy buying.
In the Nifty 500 segment, Adani Enterprises emerged as the top choice among mutual fund houses, witnessing a sharp 17.9% increase in MF holdings. According to the Motilal Oswal report, the maximum increase in value month-on-month was seen in ICICI Bank, SBI, Larsen & Toubro, HDFC Bank, Reliance Industries, Axis Bank, Kotak Mahindra Bank, Bharti Airtel, Bajaj Finance, and Eternal.
As reported by Motilal Oswal, mutual funds increased exposure towards Capital Goods, NBFC-Lending, Utilities, Retail, NBFC-Non Lending, Chemicals, Real Estate, Logistics, and EMS during April 2026. In contrast, allocation towards Technology, Private Banks, Healthcare, Oil & Gas, Automobiles, Telecom, Insurance, and Cement moderated on a month-on-month basis. The report noted that compared with the BSE-200 index, mutual funds held at least 1% less in Oil & Gas, Consumer, Utilities, Private Banks and PSU Banks, but at least 1% more in NBFC-Non Lending, Healthcare, Consumer Durables, Capital Goods and Chemicals.
According to the Motilal Oswal Fund Folio report, mutual fund data for April 2026 showed a tilt towards Capital Goods and Utilities, where allocations rose to multi-month highs, while NBFC-Non Lending exposure reached a record share within diversified equity portfolios. The report stated that fund managers favored growth themes such as Capital Goods and Healthcare while trimming exposure to Oil & Gas and some banking names, even as Utilities remained a sector where allocations and relative ownership moved in different directions.
As noted by DSP Mutual Fund's Kalpen Parekh, investors should avoid waiting for certainty in uncertain markets, citing examples like the ongoing West Asia conflict and oil price volatility. The analysis highlights that while oil prices have surged above ₹120 per barrel from previous levels, this represents a supply routing disruption rather than physical removal from the market. For Indian investors, the real risk lies in margin compression for small and midcap companies, with median EBIT margins falling by over 300 basis points during previous crude price spikes. The report recommends continuing SIP investments and maintaining realistic return expectations of 8-10% rather than the recent 20% returns.
