Chemical companies may have a high growth outlook in FY22, but mutual funds aren't optimistic. In Q2FY22, mutual funds decreased their stake in several agrochemicals, specialty chemical, and commodity chemical companies.

Agrochemical company Laxmi Organic Industries listed in March 2021 at a 26% premium. Since then its stock has tripled. However, mutual funds trimmed two-thirds of their stake in the past six months, holding 1% of the company as of September. Mutual funds have also lowered their stake in phenolics maker Deepak Nitrite to 12.6% in September, from 14.3% in July. In that time, the stock is up by 40%. 

Are mutual funds booking profits or missing out?