The market is going to be range bound going ahead and there is still a pain in micro and smallcap stocks, said Nilesh Shah, managing director of Kotak Mahindra AMC.

"The market is like a voting machine," said Shah. "You put the cash and you get the prices. If there is selling by the foreign institutional investor (FIIs) and mutual funds, undoubtedly market will have to correct.”

On the drop in equity inflows, Shah said that the market is witnessing a month-on-month drop, but year-on-year growth is still positive.

"Our belief is that year-on-year, mutual fund flows will continue to be positive partly driven by systematic investment plan (SIP) flows which are bringing in more than Rs 7,200 crore per month," he said.

According to data provided by Association of Mutual Funds in India (AMFI), net inflow into equity mutual fund schemes was at Rs 8,237 crore in June, down 32 percent from Rs 12,070 crore in May.

First Published:Jul 9, 2018 12:30 PM IST