Mutual funds shying away from bulk deals
MFs shying away from bulk deals as they prefer to retain confidentiality of transactions. Gainers: BSE ( A, B ), NSE | Losers: BSE ( A, B ), NSE I 52 Week: High, Low
By PTI |
NEW DELHI: Mutual funds are shying away from bulk deals involving large chunks of shares while investing in equity markets as they prefer to retain the confidentiality of transactions.
According to data compiled by SMC Capitals, during the period from 2006 to April 2009, the volume traded on the bulk deal counter of the stock exchanges stood at Rs 5,00,500 crore.
But the country's fund houses did transactions worth Rs 15,500 crore via the bulk deal counter, a meagre three per cent of the aggregate.
"Fund houses usually buy or sell in large chunks. MFs are trying to maintain the confidentiality of their transactions to avoid spurt in market prices," SMC Capitals Equity Head Jagannadham Thunuguntla said.
Between 2006 and 2009, MFs did 1,448 deals, only two per cent of the total 92,337 deals via the stock exchanges, the data showed.
This signifies that foreign institutional investors, promoters and high net-worth individuals (HNIs) dominated the bulk deal segment, the report said.
"MFs have sufficient cash to invest in equity markets. They are preferring to channelise their investment via open market transactions and keeping the identity of the buyer and seller under cover to prevent any movement in stocks," Thunuguntla added.
According to data compiled by SMC Capitals, during the period from 2006 to April 2009, the volume traded on the bulk deal counter of the stock exchanges stood at Rs 5,00,500 crore.
But the country's fund houses did transactions worth Rs 15,500 crore via the bulk deal counter, a meagre three per cent of the aggregate.
"Fund houses usually buy or sell in large chunks. MFs are trying to maintain the confidentiality of their transactions to avoid spurt in market prices," SMC Capitals Equity Head Jagannadham Thunuguntla said.
Between 2006 and 2009, MFs did 1,448 deals, only two per cent of the total 92,337 deals via the stock exchanges, the data showed.
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This signifies that foreign institutional investors, promoters and high net-worth individuals (HNIs) dominated the bulk deal segment, the report said.
"MFs have sufficient cash to invest in equity markets. They are preferring to channelise their investment via open market transactions and keeping the identity of the buyer and seller under cover to prevent any movement in stocks," Thunuguntla added.
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