Broader markets yet to track Sensex climb
Sebi data for January shows foreign institutional investors have put in net Rs 20,810 crore till Monday. This means the money has mostly followed the top companies. The Futures and Options (F&O) market too shows the FIIs are building up long positions expecting the Indian reform story to strengthen. In the rising market, the domestic institutions have been under pressure to sell because of redemption pressures from investors but thanks to the FII build up they too have continued to buy. As a result the volatility index at the NSE has stayed below 14 for most of the month indicating less short positions in Nifty.
Returning to the larger market story, the data on advance to decline ratio for them has weakened over the last few days and this suggest that institutional investors have been booking profits in the mid and small cap companies ahead of their results. The trend in the average daily
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