Equity Mutual Fund investments in India hit a new peak in June 2024, reaching ₹40,608 crores, fueled by new sectoral and thematic funds. This was the highest figure in the past year, followed by ₹37,113 crores in July and ₹34,697 crores in May. The closest figure was ₹26,866 crores in February 2024, which likely contributed to Nifty’s new peak. March saw consolidation, indicating lower Mutual Fund buying compared to February.
After major selling in early May, Nifty rebounded, linked to Domestic Institutional Investors (DII) investments. Despite a significant market drop in June due to national election results, increased DII and retail investments helped Nifty reach new highs. In July, after a strong June rally, the market ended lower. August began with a gap down due to Yen Carry trade and Foreign Institutional Investors (FIIs) selling. As of August 9, net FII investments were ₹-20,360 crores, while DII investments were ₹23,500 crores.
Although DII includes other investors, Mutual Fund investments have likely contributed. If this trend continues, August may see new highs with strong Mutual Fund investments.
Sources:
• Statistics – Economic Times of 10th August 2024, Page 16.
• Nifty peaks, Consolidation and Troughs – Tradingview
• DII and FII net position in Cash Segment – MoneyControl
