Late FII selling on Wed triggers outflow concerns

Foreign funds sold shares worth Rs 368 crore on Wednesday, provisional exchange data shows.

Traders are getting jittery after the premium in Nifty futures reduced, coupled with heavy selling in the last 30 minutes of trade on Wednesday, accounting for 35% of total traded volumes, as per Reuters data.

"It seems like even the FIIs especially Exchange Traded Fund flows are now at risk of being pulled out given continued political uncertainty and worries about early elections," said G. Chokkalingam, Executive Director & Chief Investment Officer, Centrum Wealth Management.

The BSE Sensex and Nifty fell below their 200-day moving average earlier in the day.

FIIs continue to be big buyers of Indian stocks in 2013, having bought over $10 billion.