MUMBAI: Indian equity investors pumped money into the stock market even as it fell 546 points or 3% in February, shows data from Association of Mutual Funds In India (AMFI). Equity-oriented schemes of mutual funds witnessed net inflows of Rs 19705.27 in February, up from Rs 14888 crore in the preceding month. This means DIIs purchased stocks even as FIIs sold shares worth Rs 35592 crore last month.
“The DIIs are effectively absorbing what the FIIs are selling,” said SK Joshi, ED, Khambatta Securities.
In the fiscal year through February, equity-oriented schemes have received a net inflow of Rs 1.36 lakh crore, while FII outflows stood at a similar amount in the fiscal year to date (Apr-Mar 8) as per NSDL data. FIIs have not only sold shares worth Rs 1.36 lakh crore this fiscal year (FY22), they’re cumulatively net short 54466 contracts Nifty and Bank Nifty futures.
India’s benchmark Nifty 50 index has fallen from a record high of 18604.45 on October 19 last year to 16345.35 on March 9. The share market which has been buffeted by fears of liquidity tightening in the US since correcting from its all-time high in October has been recently buffeted by the Russian invasion of neighbouring Ukraine.
However, benchmark indices managed to pull back for the second session running on Wednesday, with the Nifty jumping 2% or 332 points to 16345.35 and the Sensex rising 1223 points or 2.29% to 54647.33, after being massively oversold. Asian Paints, RIL, Bajaj Finance, IndusInd Bank and Bajaj Finserv drove the rally rising between 4% and 6%.
“I think we’ve bottomed out with the selling climax having been reached on Monday,” said Rohit Srivastava, founder, IndiaCharts. He cautions, however, that the market could witness “bouts of volatility,” depending on news flows surrounding Ukraine.