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FIIs turned net sellers on Friday

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Sreejiraj Eluvangal Mumbai
Last Updated : Feb 14 2013 | 7:29 PM IST
According to data posted on the Securities and Exchange Board of India (Sebi) and Bombay Stock Exchange (BSE) websites, FIIs seem to be more vulnerable to rumours than other classes of investors.
 
According to the transaction figures on the regulator's website, FIIs sold off equity worth more than Rs 470 crore on that day - the biggest withdrawal in nearly two months and the first reversal of their buying trend which had lasted for nearly a month.
 
Interestingly, mutual funds, reportedly sitting on huge cash reserves, made hay when the Sensex nose-dived on Friday. These fund houses made their biggest purchase so far this month on the same day.
 
According to data put up on the Sebi website, foreign institutions bought equities worth nearly Rs 3,540 crore on Friday "� another one-month high "� only to follow it up with a blockbuster sell-off, amounting to Rs 3,965 crore.
 
The knee-jerk reaction was even more evident, according to the figures given by the BSE.
 
According to the bourse, on that day FIIs sold equity worth nearly Rs 3,780 crore on the two main exchanges. They bought back only around Rs 3,020 crore worth shares by the end of the day, making them net sellers by more than a whopping Rs 750 crore.
 
Consistently pumping money into the domestic markets, FIIs have been instrumental in raising the benchmark Sensex from the 9,000-plus levels in late last year to near-12,000 levels by the end of last week.
 
The nearest occasion when FIIs had turned net sellers before Friday's crash was nearly a month ago when they sold off equities worth around Rs 287 crore on March 9.
 
They have been pumping in around Rs 250-350 crore on an average every day for the last three months.
 
The total net FII inflows during the last month was around Rs 2,800 crore while it is more than Rs 14,000 crore since the beginning of this calendar year.

 
 

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First Published: Apr 11 2006 | 12:00 AM IST

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