Funds pull out Rs 3818 cr from stocks in March

Big funds — foreign institutional investors (FIIs) and Indian mutual funds — sold stocks worth $864 million (Rs 3,818 crore) in March so far. As per figures available with the Securities and Exchange Board of India, FIIs alone have pulled out $624 million from India after the presentation of the budget.

Indian MFs have not lagged behind and sold stocks worth Rs 1050 crore. According to dealers, sustained institutional selling was one reason for the 500-point crash in the Sensex to the 12,430 level after the Union Budget. However, global factors have been influencing the market of late with the Sensex moving in tandem with Japanese and Wall Street stocks.

Moreover, the huge swings in stock movement have been keeping marketmen on tenterhooks. Though the market tried for a recovery after the Budget, US economy woes again triggered a selling spree across global markets including India.

Inflation and interest rates are also casting shadows over Dalal Street. With the inflation rate remaining high, investors fear more steps from the RBI to check the price pressures. Indian mutual funds have been selling stocks in the last three months. They sold stocks worth Rs 1,342 crore in January and Rs 274 crore in February.