Equity MF buying rises in April after 2-mth fall

The uptick coincided with a 3.5% rise in the Nifty 50 during the month

- ABHISHEK KUMAR

Sharp increase in secondary market purchases by fund managers in April may lead to a rebound in equity mutual fund (MF) inflows, which saw three months of consecutive decline.

In April, MFs' net equity buying surged to ₹16,050 crore from ₹12,141 crore in March. However, it remains below the FY25 average of ₹39,000 crore a month.

The uptick coincided with a 3.5 percent rise in the Nifty 50 in April, following a 6.3 per cent gain in March. It was buoyed by a strong revival in foreign fund buying streak in nearly two years.

After back-to-back months of gains, the benchmark indices — Nifty 50 and Sensex — are now only around 7 per cent below their record high, hit in September 2024. However, the midcap and smallcap indices are still more than 10 per cent lower.