FIIs, MFs net sellers in equities last week, continue buying in debt

Our Markets Bureau

Mumbai, Nov 4: Foreign Institutional Investors (FIIs), along with their domestic counterparts, mutual funds (MFs) investors, turned net sellers in the equities segment of the domestic capital market during the trading week ended on Thursday last (November 1). FIIs were net sellers in equity to the tune of Rs 99.10 crore.

However, both set of investors were net buyers in the debt segment of the capital market. As a result of this, FIIs could manage to post positive figure of net investment during the week.

On the debt front, FIIs and MFs remained net buyers at Rs 168.7 crore ($35.4 million) and Rs 977.16 crore respectively, investment trend figures released by Sebi said. According to a dealer with a domestic brokerage house, FIIs have been net sellers in the equity segment, not because of panic, or confusion, but because they have resorted to churning of portfolio. They are selling equities to invest into debt instruments. They have definitely stopped buying in equities, but they will not be selling in a hurry, as they know that the current price level offers appropriate opportunity to make an entry into certain key counters.

For the trading week ended November 2, FIIs were net sellers in equities at Rs 99.7 crore ($20.9 million). In debt instruments, foreign funds netted purchases worth Rs 224.2 crore ($47 million), while mutual funds were net buyers, both in equities and debt on November 1, at Rs 1.98 crore and Rs 48.05 crore respectively.

FIIs were net sellers in equities in September also, but they turned net buyers to the tune of Rs 715.70 crore in October. However, MFs continued to be net sellers in equities as they bought equities worth Rs 751.43 crore while offloading to the extent of Rs 1,425.84 crore, thus netting sales of Rs 674.41 crore last month.