Mutual funds have pulled out Rs 17,600 crore from the stock markets in July-August mainly on account of withdrawals from equity-oriented schemes.

The pandemic-related disruptions, a sharp slowdown in economic activity across the globe and a volatility in the equity markets led to the massive withdrawals.

Mutual funds had made a net investment of Rs 39,755 crore in the stock markets during January-June 2020, data available with Sebi showed.

FPIs net sellers

Foreign portfolio investors (FPI) turned net sellers in the Indian markets by pulling out Rs 2,038 crore so far in September as participants turned cautious in view of rising India-China tensions and weak global cues.

According to the depositories data, a net Rs 3,510 crore was withdrawn from equities, while Rs 1,472 crore was pumped into debts by FPIs between September 1 and September 11. FPIs were net buyers for three consecutive months — June to August.