MFs were net sellers in equities to the tune of Rs 451.39 crore during the month, according to the latest figures provided by the Securities and Exchange Board of India (Sebi).

FIIs were net sellers in equities to the tune of Rs 872.1 crore ($198.3 million) during the month, of which Rs 534.4 crore ($121.5 million) was withdrawn from the market during the single week ended June 29.

During the latest week, the BSE Sensex was down only by a meagre 1.32 points to 4792.74 points in a trading sans much of a volatility.

FIIs have also withdrawn Rs 17 crore ($3.9 million) from the debt market during the latest week taking their total withdrawals from the country during the period to Rs 551.4 crore ($125.4 million).

The withdrawals were said to have been fuelled by fears that the Federal Reserve may hike interest rates on the back of soaring inflation, towards the end of June.

During the previous week ended June 22, the FIIs have withdrawn a total sum of Rs 383.4 crore ($96.6 million), representing Rs 424.8 crore ($96.6 million) of net sales in equities and Rs. 41.3 crore ($9.4 million) of net buying in the debt market.FIIs were net buyers in May 2000, when they made net investments of Rs 72.3 crore ($16.4 million) in Indian markets.

Mutual funds have also unwound their positions in both equities and debt markets by Rs 82.22 crore and Rs 10.55 crore respectively during the latest week against Rs 27.99 crore of withdrawals from equities and Rs 34.37 crore of net buying in the debt market during the previous week ended June 22, 2000.However, their investments in the debt market during the month till June 29 had touched Rs 221.62 crore.

Total FII investments during 2000 till June 29 were at Rs 6,384.1 crore ($1465 million), while their investments since 1993, when they were first allowed to invest in the Indian capital markets, were down at Rs 41,851.8 crore ($11.67 bn) compared to Rs 42,786.6 crore ($11.89 bn) at the end of last month.

-- PRESS TRUST OF INDIA