Bearish trend of Stock Market turns Mutual Funds into net sellers now
As stock markets continue to face a bearish onslaught, domestic mutual funds are turning net sellers. So far, in the current month up to March 18, they have been net sellers to the tune of Rs 1,515 crore, according to the data on mutual fund transactions released by SEBI.
The development comes in the wake of their waning interest in taking up fresh investment commitment with the mutual fund industry’s net purchases coming down to Rs 513 crore in February from Rs 7,700 crore in January.
Analysts see this as a natural reaction to the market trend as during March alone the pivotal index of the BSE, the Sensex, fell by 10.09 per cent. During January-February it declined by more than 13 per cent.
In the current market anyone would be cautious. One is not sure at what level the market will stabilize. There is hardly any positive clue coming from any quarter. So some selling is expected.
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