MFs shrug off valuation concerns, step up buying as FPIs press sell button

Have pumped in over Rs 10,500 cr this month-the most since in 16 months

Domestic mutual funds (MFs) have stepped up buying of stocks this month amid a pushback by foreign portfolio investors (FPIs).

Shrugging off concerns around lofty valuations, money managers have purchased stocks worth more than Rs 10,500 crore until July 23, as data provided on Sebi website. Unless there is a huge drawdown in the remaining few sessions of the month, the buying tally for the month of July is set to be highest since March 2020.

MFs poured in a record Rs 30,285 crore into domestic stocks in March 2020, taking advantage of the sharp drop in the markets. However,