MFs turn net sellers in equity in October

Mumbai: Mutual funds were net sellers on the stocks markets in October, though foreign institutional investors made record inflows of $1.74 billion during the month, when the Sensex crossed the 13,000-mark.

According to figures compiled by the Securities and Exchange Board of India (SEBI), mutual funds reported net sales of shares worth Rs3.51 crore in October.

However, mutual funds reported net purchases of Rs2,384.94 crore in the debt segment, which again was the lowest investment of debt instruments by fund houses in the current fiscal.

Mutual funds have reported net purchases of Rs10,717.88 crore in the equity markets during the April-October period. But their net investments in the debt segment has soared to Rs35,073.55 crore in the
same period.

This is a shade lower than the net investments of Rs36,801.24 crore that mutual funds made in the debt segment in financial year 2005-06.