Uti To Pump In Rs 1000cr

Unit Trust of India is set to pump in more than Rs 1,000 crore during the next week to support the market. According to top UTI sources, the fund is sitting on liquid cash of Rs 1,000 crore that can be infused in the capital market at attractive levels.

"We will certainly pump money in key stocks at attractive valuations. Considering our collections from various schemes, offshore and onshore, we still have more than Rs 1000 cr investible surplus. There is nothing fundamentally wrong with the economy or valuations of good companies. The market has overreacted," a UTI source said. He added that UTI has pumped more than Rs 600 cr in the stock market during the past five trading sessions. "We have bought securities worth Rs 600 cr without any pressure to do so. These are pure investment decisions," the source added.

The source admitted that most of these purchases have been from foreign institutional investors. This implies that FIIs have sold more than Rs 600 cr in only five trading sessions.

When asked if purchases made in the first half of June affect dividend payouts of the fund, UTI sources said that there will be no impact on dividend and bonus payout for financial year ending June 30, 1998.

"When we say Rs 1000 cr investible surplus, it means we have taken into account all considerations mandatory for the year-end. There is no need for any panic on this count," the source added.