17K indicates strong economy, investor confidence: MF industry
Mutual funds have been major buyers in the equities market when foreign institutional investors had turned net seller on concerns of the US subprime crisis.
By PTI |
MUMBAI: With the BSE benchmark index Sensex scaling yet another milestone of 17,000 today, the mutual fund industry sees it as an indication of the strength of the Indian economy and growing investor's confidence for the stock market.
The BSE benchmark index Sensex today covered another 1,000-point journey in the shortest span of six trading sessions, crossing the 17,000 mark in the early trade today on sustained buying by funds.
The 30-share Bombay Stock Exchange index gained over 174 point to touch an intra-day high of 17,073.07 from yesterday's close of 16,899.54 points.
"Though the milestone as such is not a great concern for mutual funds as we investment in stocks for the long term perspective but the number shows that the country's growth story is getting recognised and is a good indication of the strength of the economy," Association of Mutual Funds of India Chairman AP Kurien said.
Mutual funds had been major buyers in th equities market in August when the foreign institutional investors had turned net seller on concerns of the US subprime mortage crisis. Mutual Funds had picked up Rs 4,093.90 crore in the month of August.
Besides, Mutual funds have net buyers of equities worth Rs 97 crore in September so far.
"Its celebration time for investors, good times are continuing for mutual fund investors," Mutual Fund tracking firm Value Research Online CEO Dhirendra Kumar said.
When asked about the rupee appreciation effect on certain sectors like information technology and other export related segments, Kumar said, the current rally in the market is stock-selective and is not broad-based as the previous rallies had been.
"The milestone also portrays the growing confidence of the investors in Indian markets which includes huge inflows from the foreign institutional investors," Kurien added.
The total Assets under Management (AUM) of the 32 fund houses for August stood at Rs 4,67,623.44 crore, according to data from Association of Mutual Funds in India.
Reliance MF remains the country's largest fund house with its AUM of Rs 67,597.65 crore in August followed by ICICI Prudential MF with Rs 50,611.89 crore.
The BSE benchmark index Sensex today covered another 1,000-point journey in the shortest span of six trading sessions, crossing the 17,000 mark in the early trade today on sustained buying by funds.
The 30-share Bombay Stock Exchange index gained over 174 point to touch an intra-day high of 17,073.07 from yesterday's close of 16,899.54 points.
"Though the milestone as such is not a great concern for mutual funds as we investment in stocks for the long term perspective but the number shows that the country's growth story is getting recognised and is a good indication of the strength of the economy," Association of Mutual Funds of India Chairman AP Kurien said.
Mutual funds had been major buyers in th equities market in August when the foreign institutional investors had turned net seller on concerns of the US subprime mortage crisis. Mutual Funds had picked up Rs 4,093.90 crore in the month of August.
Besides, Mutual funds have net buyers of equities worth Rs 97 crore in September so far.
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"Its celebration time for investors, good times are continuing for mutual fund investors," Mutual Fund tracking firm Value Research Online CEO Dhirendra Kumar said.
When asked about the rupee appreciation effect on certain sectors like information technology and other export related segments, Kumar said, the current rally in the market is stock-selective and is not broad-based as the previous rallies had been.
"The milestone also portrays the growing confidence of the investors in Indian markets which includes huge inflows from the foreign institutional investors," Kurien added.
The total Assets under Management (AUM) of the 32 fund houses for August stood at Rs 4,67,623.44 crore, according to data from Association of Mutual Funds in India.
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Reliance MF remains the country's largest fund house with its AUM of Rs 67,597.65 crore in August followed by ICICI Prudential MF with Rs 50,611.89 crore.
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