Mutual fund managers have stepped up their buying this month and purchased shares worth nearly Rs 9,500 crore amid a sharp correction in the equity markets.
Mutual fund managers have stepped up their buying this month and purchased shares worth nearly Rs 9,500 crore amid a sharp correction in equity markets.
This was higher than Rs 5,442 crore pumped into the equity markets last month.
According to the latest data provided by the Securities and Exchange Board of India (Sebi), fund managers bought shares worth about Rs 9,490 crore in this month.
Of this, a net investment of Rs 7,188 crore was witnessed during August 24-27, when the bechmark Sensex plunged by 1,135 points or over four per cent.
Experts said that fund managers have made intensive buying last week, when the domestic market crashed due to rout in Chinese equities. The sell-off by overseas investors in the Indian equity markets has given an opportunity to mutual fund managers.
Fund managers have been bullish on the stock markets ever since the Narendra Modi-led BJP government came into power at the Centre. Since then, they have made a net investment of more than Rs 1 lakh crore in the equity markets.
In addition, robust inflows from retail investors in the equity segment have helped fund managers to invest in stocks. Till April last year, they were liquidating holdings due to redemptions from investors.
Mutual Funds collect money from investors and buy stocks, including IPOs (primary market) and bonds.