Wind and solar energy company Suzlon Energy saw significant buying from mutual funds in May. According to a report by Nuvama, mutual funds added 14.21 crore shares of Suzlon in May, increasing their total holdings to 45.03 crore shares by May 31, 2024, up from 30.81 crore shares on April 30, 2024.
Major Increase in Shareholding
The net investment from mutual funds in Suzlon amounted to Rs 680 crore. Among mutual funds, Axis Mutual Fund made a notable new entry, while HSBC Mutual Fund bought around 2.55 crore shares for an estimated Rs 121 crore.
Stock Performance
In May, Suzlon’s stock rose by 15%. Over the past year, it delivered an impressive 231% return. In 2024, the stock’s return stands at 30% so far. Suzlon has outperformed the Nifty index, which fell by 74 points or 0.32% in May. The Nifty’s 1-year and year-to-date returns are 25% and 8%, respectively.
Mutual Fund Holdings
By March 31, 2024, mutual funds collectively held 1.86% of Suzlon, equating to over 25.26 crore shares. While the exact figures for the June quarter will be released in July, mutual funds have already purchased nearly 20 crore shares in April and May alone.
Current Trading and Market Indicators
As of today, Suzlon shares were trading at Rs 50.07 on the BSE, down by Rs 0.22 or 0.44%. The stock has been stable, with a 1-year beta below 1, as reported by Trendlyne. Suzlon shares are trading above their 50-day and 200-day simple moving averages (SMAs). Current momentum indicators, such as the Relative Strength Index (RSI) and Money Flow Index (MFI) from Trendlyne, place Suzlon in the medium range at 62.5 and 52.7, respectively.
Suzlon Energy’s strong stock performance and significant mutual fund interest reflect growing confidence in the company’s prospects, especially in the renewable energy sector.
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