Valuations, at the moment, seems to be a non-existent term in the dictionary of fund managers. With the global markets going through a very turbulent phase, relatively safer Indian markets, too, hold no charm for global fund managers.
Even more worrying is the fact that foreign funds seem to be in such a tearing hurry to get out of Indian markets that they are even willing to sell at any given rate.
Adding to the crisis of confidence, stocks which had been holding steady for some time have also come under selling pressure. The Britannia, Nestle, Infosys and Corporation Bank scrips were the casualties yesterday.
The Reliance scrip continued to be mercilessly hammered, and ended the day at Rs 122. Foreign funds were reported to have sold close to 8 lakh shares yesterday. Surprisingly, the "buying support", which immediately emerges as soon as the scrip price begins to slide, has been restrained this time. With FIIs on a war path, buyers seems to be cautiously avoiding this counter.
The ICICI scrip also seems to facing the wrath of FII sales. Close to 12 lakh shares of the FI have been dumped in the first two trading sessions of the week. A leading Singapore-based fund is among the aggressive sellers at the counter. Refinery majors HPCL and BPCL continued to wilt under incessant selling pressure from FIIs, touching new 52-week lows every day. On Tuesday, around 50,000 shares of HPCL and 30,000 shares of BPCL were sold by foreign funds.
Around 25,000 shares of the ACC scrip was sold by a foreign fund on Tuesday. The scrip shed five per cent on the NSE yesterday. Gujarat Ambuja Cements, too, came in for fund-based selling with nearly 3-4 lakh shares reported to have been offloaded yesterday.
Selling pressure continues unabated at the Ranbaxy counter with a foreign fund having reportedly sold 25000 shares on Tuesday.
Amidst the chaos, the only consolation seems to be a purchase of around 1.5 lakh shares of the Tata Power scrip by an FII brokerage. A leading US fund having completed its sale at the Pentafour Software counter is now believed to be steadily accumulating the shares of HCL Infosystems.
