Equity mart may see Rs 8,000cr inflows

Stock markets may soon witness a huge capital inflow from domestic mutual funds, which are waiting for the right investment opportunity with a cash pile of over Rs 8,000 crore.

"The huge pile of cash that mutual funds hold with them would sooner or later land in the equity markets," brokerage firm Sharekhan said in a report.

Out of the total cash of Rs 8,155 crore held by domestic mutual funds in October, new fund offers alone have mobilised Rs 1,466 crore while the remaining Rs 6,689 crore is from existing schemes.

"Cash, as a percentage of the total corpus (for all funds which are atleast 3 months old), declined from 7.8% in September to 6% in October," the report said.

MFs had deployed their cash aggressively in equities to reap the harvest of the strong momentum in the market. This led to cash levels for all equity funds going down to Rs 8,155 crore in October from Rs 8,249 crore in September.