MFs turned bullish on equities in August

Mumbai: Mutual funds have once again turned bullish on stocks,reporting net purchases in equities in August,the first time since the markets tumbled in May.

According to the Securities and Exchange Board of India (SEBI), mutual funds reported gross purchase of shares worth Rs8,851.58 crore in August, and gross sales of Rs8,425.14 crore, resulting in net purchases of Rs426.44 crore.

In June, mutual funds had reported net sales of Rs1,976.95 crore, and in July of Rs81.71 crore. During the first two months of the current financial year, they had reported net purchases: of Rs3,120.56 crore in April, and Rs7,893.36 crore in May.

However, mutual funds slowed down their investments in the debt segment in August. Net purchases amounted to Rs4,316.06 crore, the lowest this financial year.

They had reported net purchases (in debtinstruments) of Rs4,427.88 crore in April, Rs7,612.41 crore in May, Rs5,328.64 crore in June, and Rs7,716.21 crore in July.

During financial year 2005-06, mutual funds had invested a net of Rs14,302.2 crore in equity, and Rs36,801.24 crore in debt.