The market is likely to be volatile with a negative bias on Wednesday.An important factor in the market now is the downward pressure exerted by FIIs, which have consistently sold in the last ten days. The market is currently being held up by strong buying by mutual funds, many of which are near the regulatory deadlines for deployment of funds raised during new fund offers during the last three months."They really don't have any choice now. They have to be fully invested within two months of raising capital. For one or two of the biggest funds, that is right now," a broker said. FIIs sold Rs 440 crore worth of equity in the spot market on Tuesday, and there is likely to be another bout of sell-off tomorrow on the news of selling by FIIs.Though corporate results have so far been above or at par with expectations, FIIs' profit-taking mode is likely to take its toll as they are known to stick to buy and sell positions continuously for weeks.
