InvestorQ : Have Indian mutual funds been sellers in Indian stocks like RIL and HDFC Bank?
diksha shah made post

Have Indian mutual funds been sellers in Indian stocks like RIL and HDFC Bank?

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rhea Babu answered.
4 months ago
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July 2020 has been a month of aggressive selling for Indian mutual funds. Equity mutual fund turned aggressive sellers in the Indian equity markets selling equities close to Rs.9000 crore in a single month in a mix of caution and profit booking.

The three heavyweights that got sold were Reliance, HDFC and HDFC Bank. These stocks showed the maximum extent of profit booking during the month. These stocks had shown a bounce and there were also concerns over valuation in all these cases.

Experts attribute this selling more to some opportunistic profit booking considering the uncertain circumstances. Most fund managers took advantage of the 7.5% rally in the indices in July and 16% rally in the last two months of June and July.

Among the stocks seeing inflows, , TCS was one of the most sought after shares during the month. One cannot overlook that there was a sharp rise in equity fund redemptions at Rs.16,622 crore in Jul-20 as per AMFI data and that may have caused liquidity concerns.

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