March 2010 witnessed one of the biggest monthly inflows into the Indian equity markets from foreign institutional investors (FIIs) since October 2007. Data provided by market regulator Securities and Exchange Board of India (Sebi) show that FIIs bought stocks worth over $4.37 billion in March.

In October 2007, FIIs had bought stocks worth over $5.27 billion. On Wednesday, they were net buyers to the tune of Rs 430 crore, their twenty-second consecutive buying session, according to provisional figures by the Bombay Stock Exchange (BSE).

However, on Wednesday, Indian markets continued their weak run for the second consecutive trading session, ending the day with marginal losses. Investors continued to book profit after the recent rise and weak cues from the Asian markets, leading to volatility in the domestic markets on Wednesday.

The 30-share Sensex of the BSE was down 0.35%, or 62 points, to close the day at 17,527.77 points. The broader S&P CNX Nifty of the National Stock Exchange (NSE) lost 0.25% to end at 5,249.10. Almost all Asian markets ended flat on Wednesday, after witnessing a huge surge in the last few trading sessions.

Ambareesh Baliga, vice-president at Karvy Stock Broking said: ?With sustained performance of the equity markets since the Union Budget and with the strengthening of the rupee, FIIs are finding the Indian markets attractive. Also, we are providing better returns compared to other emerging markets. So, for now, we are likely to attract more inflows from FIIs.? Power and healthcare remained top performers of the day among BSE?s sectoral indices, while IT and FMCG sectors ended the day with maximum losses. ?In the coming days too, the markets are likely to remain range-bound and the Nifty will keep trading between 5,150 and 5,300 points. However, if some negative news emerges from the Eurozone, then we might see some selling from foreign funds,? he added.

The NSE?s cash segment reported a turnover of over Rs 13,200 crore, up by 0.10% against the previous session, while the average daily turnover in the last six months stood at approximately Rs 15,300 crore.

However, NSE?s derivatives segment reported a turnover of over Rs 66,700 crore, gaining 10.9% compared to Tuesday’s turnover, while the average daily turnover in the last six months stood at approximately Rs 76,800 crore.