| In the last nine trading sessions alone, FIIs have sold shares worth Rs 6,127 crore, as against purchases of more than Rs 10,000 crore from the secondary market in 19 sessions in July. |
| However, significant support has come from domestic institutions that have been buying substantially, and this has limited the volatility on the markets. |
| In first 19 trading sessions of July (up to 26 July), FIIs purchased shares worth Rs 10,426 crore from the secondary market. During this period domestic funds booked profits on share sales of Rs 2,516 crore. Over the 19 sessions the Sensex went up by 1125.8 points to 15,776 points. |
| But in just nine trading sessions since 27 July, FIIs sold Rs 6127.65 crore worth shares, or about 60 per cent of their secondary market investment in July. |
| During these nine sessions, domestic institutions purchased shares totalling Rs 4,039.75 crore, which was more than their sales in July. |
| The Sensex lost 468 points during this period. According to market sources, while some domestic funds were making value picks some others were playing the traditional role of market saviours. |
| "FIIs are booking profit wherever there are gains to be made, as there is no clarity on how long the sub-prime mortgage problem would continue," said Dharmesh Mehta, Head Broking, Enam Securities. |
| The rupee is also more than 10 per cent stronger from when FIIs were buying last month, which makes for handsome gains. |
| FIIs are also actively hedging in futures and option (F&O), selling Nifty to hedge their portfolio, which was having a cascading effect on the overall market. |
| Siddharth Bhamre, derivative analyst with Angel Broking, said, "Even FIIs are looking confused on Thursday, as they are reacting differently. While some are going short, others are going long or covering short positions." |
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