USD 5.6bn cash with Mutual Fund houses…Will they counter act FII sell off?

Smart fund houses are cash rich. They have USD 5.6bn of cash (till May 08 end) with them (14% of Equity based AUM-quite high figure). Reliance, ICICI and SBI alone have more than half of that. The big guy Reliance has 35% of total cash of the industry (and 22% of its Equity AUM was in cash). Will they come to the rescue of the market, if it goes down further? Will they counter act FII’s further sell off. FII have sold off USD 6.2bn YTD by June end and market is down 35%...and now MFs have USD 5.6bn cash with them which they generally do not tend to keep it for longer time…not in their mandate.

So, can we believe in contra gutsy investments by these biggies???