The Securities and Exchange Board of India (Sebi) had eased rules for arbitrage funds in a bid to boost participation from the ₹3 trillion mutual fund category in the CAS
The two fund houses bought LIC shares worth Rs 17,145 crore in August, while mutual funds together accounted for an estimated 76.5 per cent of the government's OFS.
In the Nifty 50, the most tracked index by passive funds, the group's combined weight declined to 7.6 per cent in August 2026 from 8.3 per cent in August 2025
Market rebound and attractive smallcap and midcap returns, monthly net SIP additions hit a six-month high of 1.3 million, pushing total monthly contributions to a record ₹32,297 crore
Sensex and Nifty end about 2 per cent lower for the week at their lowest levels since June 11, while broader markets outperform despite widespread sectoral losses
Growth was largely driven by mark-to-market gains amid a rally in key global markets and rising investor interest in overseas schemes as domestic markets underperformed
Kotak MF's Harsha Upadhyaya favours banking, manufacturing and healthcare, while remaining cautious on IT and advising investors against aggressive mid- and small-cap bets
Friday's selling wiped out most of the net FPI inflows recorded in August, reducing net buying to ₹454 crore; DIIs purchased equities worth ₹5,184 crore
