The primary market segment of the domestic capital market witnessed slackness in resource mobilisation during the second quarter of 2008-09, said the Reserve Bank of India in its report on the macroeconomic and monetary developments mid-term review, on Thursday.

Cumulatively, resources raised through public issues declined sharply to Rs 2,361 crore during April-September 2008 from Rs31, 850 crore during the corresponding period of 2007, the report said.

The number of issues also declined considerably to 32 from 60. Out of 32 issues during April-September 2008, 19 were initial public offerings (IPOs) issued by private sector companies, constituting 16% of total resource mobilisation. Furthermore, all the issues during April-September 2008 were equity issues by private non-financial companies except one issue by private-financial company. The average size of public issues declined to Rs 386 crore during April-September 2008 from Rs 531 crore during April-September 2007.

Mobilisation of resources through private placement declined by 31.2% during April-June 2008 as compared with an increase of 62% during April-June 2007.

Public sector entities accounted for 34.1% of total mobilisation during April-June 2008, lower than the corresponding period of the previous year, 39.1%.

Resource mobilisation through financial intermediaries, both from public sector and private sector, registered a decline of 29.9 % over the corresponding period of last year, accounting for 53.1 % of the total mobilisation during April-June 2008.

Resources raised by non-financial intermediaries also declined by 32.6% (47% of total resource mobilisation) during April-June 2008 over the corresponding period of last year.

During April-September 2008, the resources raised through Euro issues ?American Depository Receipts (ADRs) and Global Depository Receipts (GDRs)?by Indian corporates declined considerably by 58.8% to Rs 4,652 crore, as compared to the corresponding period of the previous year. All the Euro issues during April-September 2008 were GDR issues.

During April-September 2008, net mobilisation of funds by mutual funds declined sharply by 97.7 % to Rs 2,477 crore attributed to the uncertain conditions prevailing in the stock markets. Net outflows were witnessed under both the income/debt-oriented schemes and growth/equity-oriented schemes.