Mutual funds withdraw Rs 30,760 crore from equities in November

Mutual funds (MFs) have indulged in a selling spree for the sixth straight month in equity market in November. MFs withdrew Rs 30,760 crore on profit booking last month. Experts say the selling trend will continue unless markets fall.

MFs have sold equities worth over Rs 28,000 crore in the first 11 months of the ongoing year (January-November), data available with the Securities and Exchange Board of India (Sebi) show.

However, constant selling by MFs could not stop the market to hit historic highs in the last few months as FPIs have indulged in record buying in equities this year.

Foreign Portfolio Investors (FPIs) infused over Rs 1.08 lakh crore in the Indian equity markets till November 2020.

"With markets touching new highs and Nifty PE (private equity) valuations crossing 36 times, there is profit booking happening. This is visible from the increased 'outflow' number compared with September -October," Vidya Bala, co-founder of PrimeInvestor.in told PTI.

FIIs infuse Rs 46,251 crore in November, highest ever inflows for a month

The gross inflows have also not picked up much as the impact of COVID-19 on individual investor's income is yet to normalise, she added.

MFs withdrew Rs 30,760 crore from equities in November. This has taken the outflow to over Rs 68,400 crore since June.

MFs pulled out Rs 14,492 crore in October, Rs 4,134 crore in September, Rs 9,213 crore in August, Rs 9,195 crore in July and Rs 612 crore in June.

However, they invested over Rs 40,200 crore in the first five months of the year (January-May). Of this, Rs 30,285 crore was invested in March.

With PTI inputs