AMC Stocks Rise on SIP Gains, Outlook

Listed asset managers may clock sustained aggregate revenue growth in Q1

- NIKITA VASHISHT

Investors lapped up shares of asset management companies (AMCs) on Thursday as analysts expect the sector's earnings to gain from steady mutual fund (MF) flows and a recovery in the secondary market.

UTI Asset Management Company (UTI AMC) hit a record high of 1,429.4 per share on the BSE, rising 6.3 per cent in intraday trade. Shares of HDFC AMC, Shriram AMC, Nippon Life India Asset Management, Escorp Asset Management, and Aditya Birla Sun Life AMC, gained 1 per cent to 4.3 per cent. By close, these shares ended up to 4 per cent higher compared to the BSE Sensex's 0.4-per cent decline.

Earnings outlook Active equity net MF inflows in June surged 29.6 per cent to ₹31,410 crore from the previous month, helped by record systematic investment plan (SIP) inflows of ₹27,269 crore and lump sum inflows of ₹4,140 crore. SIP inflows were at ₹26,600 crore in April and ₹26,700 crore in May, significantly contributing to active equity net inflows of ₹26,920 crore and ₹24,230 crore.