Equity MFs sell close to $1bn since September 14

Nearly a billion dollars and counting. Even as FIIs (foreign institutional investors) continue to pump money into the Indian markets, equity mutual funds (MFs) have net sold (higher sales than purchases of) stocks to the tune of nearly Rs 5,040 crore (around $930 million) since September 14, when the government announced a slew of reforms aimed at putting slowing growth back on track.
Equity MFs have net sold stocks worth about Rs 5,423 crore since September, data with market regulator Sebi showed.
Unsurprisingly, bulk of the sales came when the markets staged a recovery following the government's reform initiatives.
"A lot of investors, who made an entry when the markets were at their peak, are getting their capital back after a long time. They are calling it quits at par (value)," said Sunil Singhania, head (equities), Reliance Capital Asset Management.
"Markets have done well after a long time and so profit booking is happening," said Gopal Agrawal, chief investment officer, Mirae Asset Global Investments India. Equity MFs net sale of stocks touched Rs 3,198.7 crore in September, the highest in 2012, Sebi data showed. Incidentally, the gross sales of stocks by fund houses during the month were also the highest since February.