By contrast, fund managers bought stock worth a staggering Rs 33,708.54 crore in equity funds in March this year, when the index plummeted.
ET Intelligence Group: Big money, especially in the short run, often moves in the direction opposite to that of the movement in benchmark indices. Take the mutual fund stats, for instance, to test the theory.
Last month, the benchmark equity gauges climbed about a fifth from the recent lows reached on March 23. That climb, however, coincided with the biggest selling by mutual funds in at least four years, the Securities and Exchange Board of India (Sebi) data showed.
And that bout of selling came in the immediate aftermath of record buying in March, particularly toward the end, with indices falling like the clueless visiting batters on a vicious Sabina Park pitch during the 1970s’ Caribbean tour.
In April, according to Sebi data, mutual funds sold Rs 7,965.5 crore, the highest since ₹10,194.5 crore sold in March 2016. There has been massive selling in sectors such as media and entertainment, metals, automobiles, paper and construction in the month in which indices climbed from the March lows, giving funds the opportunity to make a quick exit.
By contrast, fund managers bought stock worth a staggering Rs 33,708.54 crore in equity funds in March this year, when the index plummeted.
According to Value Research data, fund managers have been gradually raising their cash levels in equity funds (open-ended). In April, cash levels were at an eight-month high, indicating that fund managers have adopted a cautious stand on the movement of the benchmark index as the impact of the lockdown resonates through the global economy.
