FIIs and MFs operate in contrast in equity market

MUMBAI, SEPT. 30. Foreign institutional investors (FIIs) and mutual funds (MFs) operated in contrast in the equity market in September with the former being net sellers worth Rs.415.6 crores ($88.2 million) and the MFs remaining net buyers at Rs. 137.29 crores.

MFs were active sellers in debt market with net sales at Rs. 239.40 crores. FIIs were also net sellers at Rs. 117.7 crores ($25 millions), according to the data available with Securities and Exchange Board of India (SEBI) here.

Trading activity after September 11, the day of terrorist attacks in the U.S., saw radical shifts with FIIs turning net sellers in equities on six consecutive days.The Bombay Stock Exchange Sensex dipped below the eight year low at 2600.12 on September 21.

On September 20, the Reserve Bank of India in consultation with the Centre, decided that the cap on FII investment in company could now be raised beyond 24 per cent limit set earlier.

Foreign funds abstained from any activity in debt for six trading days in the reporting month.

FIIs were net buyers in equities for nine days with highest net investment at Rs.70.90 crores ($15 million) on September 20 while MFs were net buyers on eight days with highest net investment of Rs. 116.38 crores on September 12, the SEBI said.

On September 16, FIIs bought equities worth Rs.168.9 crores and offloaded to the extent of Rs. 278.7 crores, thus netting sales of Rs. 109.8 crores ($23.3 million), the highest for the month.

MFs recorded their highest net sales in equities at Rs. 32.42 crores on September 26.On the debt front, MFs bought and sold instruments worth Rs. 22.49 crores and Rs. 206.26 crores respectively, thus turning net sellers at Rs. 125.41 crores on September 21, the highest for the month.

- PTI

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