The markets were jittery for most of November 2000. The impact this hand on funds is for all to see.

There were only 7 instances (out of 21 trading days) in November 2000 when fund managers made net purchases. These amounted to Rs 11 m. Barring these instances, fund managers sold during the month. Gross sales during the month amounted to over Rs 55 m.

The selling was spurred by falling markets, with fund managers offloading stocks in an attempt to cut losses. However, when the Sensex did climb during the month, fund managers made moderate purchases. This seems to indicate that funds continue to time the market. Significant selling during the month could also be linked to redemption requests.

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