MFs step up buying as markets wobble, equity scheme purchases at 4-mth high

Participants in mutual funds say corrections gave some opportunities to enter at lower levels. In November, S&P BSE Sensex lost 3.8%, while S&P BSE Midcap shed 2.33%

Domestic mutual fund (MF) managers stepped up their purchases in November as the markets dropped to their lowest in 21 months. Equity MFs bought shares worth Rs 19,258 crore, most since July.

Participants in the mutual funds say that corrections in the Indian markets gave some opportunities to enter at a lower level. In November, S&P BSE Sensex went down by 3.8 per cent, while S&P BSE Midcap index declined by 2.33 per cent.

MF buying acted as a counterbalance to the sharp outflows by foreign investors, particularly in the previous 6-7 trading sessions when they have pulled out over