According to reports from Mint, Nippon India Small Cap Fund is the largest open-ended small-cap mutual fund in India with an AUM of ₹72,673 crores. As per SEBI regulations, small-cap funds must invest at least 65% of their assets in small-cap stocks, making tracking the fund's portfolio changes valuable for understanding market sentiment. The fund's May 2026 activity reveals strategic positioning across multiple sectors, with particular emphasis on industrial, engineering, and capital goods companies.
As reported by Mint, the fund increased its exposure to several key stocks during May 2026. Bharat Heavy Electricals Limited saw its weightage rise from 1.67% to 1.93%, representing an absolute increase of 0.26 percentage points. Other notable additions included Avalon Technologies Limited (weightage increased from 0.56% to 0.79%), TD Power Systems Limited (1.54% to 1.71%), and Central Mine Planning & Design Institute Limited (0.64% to 0.81%). The fund also added fresh positions in Bharti Airtel Limited (0.00% to 0.59%), indicating new opportunities in the telecom sector. Bharti Airtel recently disclosed a financial relief of more than ₹10,500 crore following the Bombay High Court's quashing of Centre's one-time spectrum charge demands, providing immediate balance sheet relief to the telecom operator.
According to Mint reports, the buying trend reflects increased exposure to industrial, engineering, and capital goods companies. The fund raised allocation to State Bank of India (1.18% to 1.29%) and Gland Pharma Limited (0.43% to 0.55%), while also increasing exposure to consumer-oriented businesses including Bajaj Consumer Care Limited. This strategic positioning demonstrates continued conviction in themes linked to power infrastructure, manufacturing, and the broader capital expenditure cycle, with the fund manager maintaining focus on sectors with strong growth potential.
As reported by Mint, the fund decreased its exposure to several industrial and financial sector companies during May 2026. Voltamp Transformers Limited saw its weightage reduced from 1.04% to 0.82% (-0.22 percentage points), while Multi Commodity Exchange of India Limited decreased from 1.76% to 1.57% (-0.19 percentage points). Other notable reductions included Whirlpool of India Limited (1.06% to 0.88%), Emami Limited (1.03% to 0.90%), and HDFC Bank Limited (1.89% to 1.77%). The fund also made complete exits from ITC Limited and Siemens Energy India Limited, reflecting more decisive portfolio reshuffling in these names.
According to Mint data, as of May 2026, the fund's top 10 holdings include Bharat Heavy Electricals Limited (1.93%), HDFC Bank Limited (1.77%), TD Power Systems Limited (1.71%), Multi Commodity Exchange of India Limited (1.57%), and Apar Industries Limited (1.55%). Despite portfolio adjustments, both Bharat Heavy Electricals and HDFC Bank continued to remain among the fund's top 2 holdings. The analysis of these high-conviction stocks provides insights into sectors where the fund manager is deploying capital and identifying future growth opportunities in the small-cap segment.
