MFs Take Cautions In Selling

Mutual funds have sold equities for the second day in a row on Monday (22 January 2007). Domestic funds sold shares worth a net Rs 54.23 crore on Monday, which, however, was much lower than an outflow of Rs 402 crore on 19 January 2007. Mutual funds' net outflow of Rs 54.23 crore on 22 January was a result of gross purchases of Rs 468.40 crore and gross sales worth Rs 522.63 crore. The Sensex rose 27 points that day in volatile trade. There have been alternate bouts of inflows and outflows in equities from mutual funds this month. A substantial outflow in four trading sessions, between 8 January and 11 January, was followed by an inflow in five trading sessions, from 12 January to 18 January. Mutual funds turned sellers again for the next two days. For January 2007 so far, mutual funds have been net sellers worth Rs 202 crore.