Though the FII interest is generally measured in terms of net inflow/outflow of funds, their activity in January has surprised market players who had anticipated sustained net buying from the foreign institutions. The net FII investments so far in the current month is a drop in the ocean, about Rs 50 crore.

The turnover during the month (till January 24) suggests a great deal of churning on the part of the FIIs, moving from one sector to another and at the same time ensuring that the market does not give way. The purchases for the current month is around Rs 5027 crore, while the sales were Rs 4976 crore. This suggests that every order for sale has been matched by a buy order, thus holding the centre.

The sustained buying and selling also explains the daily volatility in the market. But the overall investment interest is reflected in the fact that the Sensex has been range-bound with a closing high of 5518 and closing low of 5296.

The Rs 10,000 crore turnover for January 2000 is a record of sorts, if one compares the turnover of Rs 67,700 crore for calendar 1999.

It's only in the last two trading sessions that there has been some sustained net inflow of FII money. Last Friday's and Monday's net investments add up to Rs 335 crore. What also emerges from the trend is the contrarion approach, selling when the index goes up and buying on every fall.Sustained FII interest is also indicated by new registrations with the Sebi.

Over the last one and a half months eight new FIIs have been registered including big players like Fidelity Funds, Warburg and BNP Asset Management. Chase Manhattan Bank has also registered as a trustee for the Amoco Corporation Mastertrust for Employee Pension Plans, New York.

NEW FII REGISTRATIONS :