In March, domestic mutual funds became active participants in the Indian equity market, deploying ₹75,500 crore (approximately $9.1 billion USD) while foreign institutional investors (FIIs) sold off about ₹1.1 lakh crore (roughly $13.3 billion USD). HDFC Bank, despite facing scrutiny due to the abrupt resignation of its chairman Atanu Chakraborty, emerged as the top buy, with net mutual fund additions of ₹15,800 crore. This trend reflects sustained confidence in the bank, as it has been a consistent top pick for several months among major asset managers. In the midcap segment, BSE was highlighted as a strong buy, particularly by Axis Mutual Fund, which added ₹560 crore. Conversely, Tata Motors saw significant sell-offs as mutual funds shifted their focus towards financial stocks, indicating profit-taking behavior. The overall trend shows that banking stocks dominate mutual fund portfolios, with HDFC Bank, ICICI Bank, and others being key holdings amid a backdrop of robust equity inflows and record systematic investment plan (SIP) participation.