Mutual Funds Deployment Into Equity Market Lowest Since July 2023
Mutual funds' net investment in Indian equity market has declined to its lowest in over one-and-a-half years amid global headwinds.
The net investment by mutual funds into the Indian equity market has significantly cooled, with the deployment coming down to Rs 13,458.85 crore in March, the lowest since July 2023, according to SEBI data.
The amount is sharply lower as compared to Rs 48,000 crore in February and Rs 57,700 crore in January, the data showed.
The previous record-low deployment was seen in July 2023, at Rs 7,707 crore. Since then, it has been over Rs 15,000 crore.
The highest net investment of mutual funds in the stock market was recorded in October 2024, when the deployment rose to Rs 90,770 crore. This came after the Indian stock market surged to a fresh high in end-September.
Meanwhile, in April so far, the deployment into equity market stood at Rs 5,428 crore.
The recent decline is likely based on the fall in the broader markets. This headwinds that were coming in from geopolitical changes and shifts had a direct impact on the markets back home as well.
The Indian equity market faced a steep correction in the first couple of months of 2025, as they declined by about 15% from the September peak. The recovery in March, however, narrowed the gap.
The mayhem triggered by US President Donald Trump's latest tariff actions has again put pressure on the Indian benchmark indices.
The market witnessed its worst session in 10 months, with the NSE Nifty 50 ending 742.85 points or 3.24% lower at 22,161.6, and the BSE Sensex closing 2,226.79 points or 2.95% down at 73,137.9.
