Nilesh Shah, MD of Kotak Mahindra AMC, spoke to CNBC-TV18 about the mutual fund inflows and the current market rally.

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Shah said although the mutual fund inflows have slowed, they are not negative and mutual funds are net buyers in this current market rally.

"There could be other domestic institutional investors who are creating space for divestment by selling in the market," he said, adding that there could be selling in the cash market but buying in the Futures market.

"So, it would be wrong to assume that MFs are selling in the present rally," Shah said on Friday.

“The net inflows are still Rs 5000-6000 crore and there is that much cash we have to deploy on a monthly basis,” he said.