However, the buying intensity of the local funds eased in May with a gross purchase of Rs 54,603 crore, the lowest in six months. Their share in the total equity turnover dropped to 4.1% in May 2021, the lowest since August 2020.
Domestic funds had reported a record outflow of Rs 71,680 crore on the three month rolling basis in December 2020 and improved consistently since then. Their gross buy-sales ratio was 105% in May, at par with long-term average.
According to the NSDL data, the value of the equity held by the domestic funds increased by 47% year-on-year to Rs 15 lakh crore at the end of April 2021. The total institutional equity portfolio value was Rs 94.8 lakh crore. Of this, 47.8% was with foreign portfolio investors (FPIs). FPIs sold Rs 12,613 crore worth of Indian equities in the two months to May. Despite that, the Nifty 50 gained 6% during the period aided by the domestic inflows.
