Dual engines to fuel bull market? Mutual fund cash hits multi-year low of 4% as FIIs turn buyers after 4 months

Mutual fund cash holdings fell to a multi-year low of 4 percent in June as funds deployed capital, with equity AUM rising to Rs 45.78 lakh crore. FIIs turned net buyers after four months of selling, and Goldman Sachs sees the Nifty recovering toward its June 2027 target of 26,500, implying about 10 percent upside. The brokerage expects large caps and banks to benefit most as flows rotate from growth to value, supported by lower commodity prices, a stabilised rupee and resilient domestic growth.