Although foreign institutional investors have been net buyers of equity worth Rs 20,736.10 crore after the rate cut by US Fed, some with a short-term view have been selling aggressively as well.
The daily average of gross selling by FIIs in the Indian market post-September 18 until now has touched around Rs 3,149.32 crore, which is much higher than the average witnessed during the peak of the US subprime crisis in August.
In August 2007, the daily average gross selling was around Rs 2,988.63 crore, while it was Rs 2,587.30 crore in September (Rs 2,910.26 crore since September 19 until the end of the month) and Rs 3,866.50 crore in October 2007.
Market experts say, while fresh commitment from long-term foreign investors are coming, short-term investors like hedge funds are also booking profits in the market.
Jignesh Desai, head, institutional sales, SBICAP Securities, said, ?Fresh commitments are coming from new investors from regions like Europe, Australia and Japan. However, investors with a short-term view are selling in the Indian market.?
Agreed Anita Gandhi, head, institutional business, Arihant Capital Markets. She said, ?It is true that some FIIs that have entered at lower levels are partially booking profits.?