Exit Poll Probe Reveals 21 Mutual Funds, 27 FPIs, 7 Retail Investors And A PMS Amongst Largest Sellers

Mutual funds were amongst the largest sellers when the market rallied reacting to the general election 2024 exit poll results. The Nifty 50, India's benchmark index, rose 3.25% on June 3 to fall over 5.93% after the poll results. The fall called for investigations into the exit polls which allegedly led to losses for the investors on the counting day on June 4.

According to market regulator SEBI's data shared with the Indian Parliament, amongst the top 100 sellers on June 3, a day before the poll results, 21 domestic mutual fund entities were gross sellers to the tune of Rs 15,572.79 crore on the National Stock Exchange Ltd., making them the biggest sellers amongst the top 100 clients on June 3.

The MFs were closely followed by 27 foreign portfolio investors who were gross sellers to the tune of Rs 10,658.31 crore on the day preceeding the Election Counting Day.

There were seven retail clients gross sold worth Rs 4,544.36 crore and and six Insurance companies that gross sold Rs 2,566.45 crore ahead of the poll results. On the BSE 79 retail clients gross sold worth Rs 6,317.86 crore. Retail investor category include HUF, Individuals, Proprietorship firms, NRIs and Partnership firms and Limited Liability Partnerships, the disclosure added.

Interestingly, the data also reveals that there was one portfolio manager among the top 100 sellers who gross sold worth Rs 362.52 crore on the Monday.

On the NSE top 100 clients sold worth Rs 87,915.39 crore while on the BSE top 100 clients sold worth Rs 7083.75 crore.

The regulator did not provide any data on the how the activity took place in the derivatives segment of the exchanges.

The government in its written response to the Lok Sabha said the market regulator has not provided any specific information on any 'unfair trading'.

It is noteworthy that the SEBI chairperson refused to comment on any specific investigation.