MFs buy Rs 622 cr equities in January while FIIs sell

New Delhi, Jan 27 | Updated: Jan 28 2005, 05:30am hrs
Even as foreign institutional investors have (FIIs) turned net sellers on the bourses, mutual funds have made a net investment of Rs 622 crore in the new year till January 25.

FIIs have been net sellers to the tune of Rs 637 crore during the current month till January 25, according to data available with the Securities and Exchange Board of India (Sebi).

During the current fiscal, mutual funds have been net buyers only in April when funds made a net investment of Rs 1,005 crore. Though three more trading days to go before the closure of the current month, mutual funds may remain net buyers for this month, too.

While mutual funds remained net sellers for most of the days during the current month, FIIs have been regularly pulling out from bourses, taking the the BSE Sensex below 6100 points.

The apparent reversal in the investment trend by mutual funds during the current month so far has largely been due to a slowdown in selling rather than a major pick up in gross investment.

Though, three more days to go before the closure of the month, gross investment in January has been Rs 3,136 crore compared with the figure of Rs 4,795 crore in December 2004 and Rs 3,589 crore in November 2004. However, gross investment in equity has sharply declined to Rs 2,513 crore in January so far compared with Rs 5,151 crore in December and Rs 4,284 crore in November.