MFs turn net sellers in Q2, offload shares worth $1.2 bn

New Delhi : Domestic mutual funds seem to have taken a bearish stance in stock market during the last quarter, when they offloaded shares worth about $1.2 billion (Rs 6,625 crore) despite a significant uptrend in the overall market and impressive buying by foreign investors, according to research report by BofA-Merrill Lynch.

MFs turn net sellers in Q2, offload shares worth $1.2 bn

This is against a net inflow of $50 mn in the previous quarter (April-June 2012).

Individually, sectors like financials and consumer were among the worst hit in terms of net-sale by mutual funds, while net purchases were made in stocks from industrial and consumer staple segments.

Interestingly, FIIs infused a net amount of about Rs 40,000 crore in Indian stocks in July-September period on the back of a slew of reforms initiated by the centre, pushing the broader Sensex to surge over 1,300 points or more than 7%.

Domestic MFs lowered their exposure to companies like ICICI Bank with sale of shares with an estimated $190 million, $100 million each in RIL and ONGC,  $60 million in ITC, $50 million in Jindal Steel, $40 million each in BPCL, BHEL and HUL.  On the other hand, they invested $240 million in  Cairn India, $40 million in  Canara Bank and $30 million in HDFC .  — Agencies

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