Foreign institutional investors (FII) have been?on a buying spree ever since the Union Budget for 2010-11?was presented. Since then FIIs have bought stocks worth over Rs 9,000 crore and have been out shopping every day for?the last 10 trading sessions. This has resulted in the markets demonstrating tremendous resilience. Since the Budget, the?Indian equity markets rose by over 4%. The?30-share Sensex the BSE increased by 4.5% while?the S&P CNX Nifty of the National Stock Exchange (NSE) has clocked a? similar?rise of 4.4%.
While FIIs have been stocking up on Indian equities,?there has been consistent selling from the domestic institutional investors (DII) as they continue to?book profits.?From January 26 till date, DIIs have sold stocks worth Rs 4,700 crore; they were net sellers on Friday too to the tune of over Rs 90 crore, according to the figures provided by the BSE.
As per the provisional figures given by the BSE, FIIs have picked up equities?worth approximately Rs 370 crore?last Friday. KR Choksey Securities MD Deven Choksey said, ?With some countries like Greece still under pressure, FIIs are investing here as they find Indian markets relatively stable.?
?It?s the end of the March quarter and DIIs are selling to unwind their position for the March series in the derivatives segment and booking profits. Once we enter April we are likely to again witness net inflows from the domestic players,? added Choksey.
On Friday, Indian markets continued their weekly gain for the fifth consecutive session. However,?it ended the day on a flat note following profit booking at various counters. BSE Sensex ended the day at 17,166.62, down by 1.34 points, or 0.01%, while Nifty gained 3.60 points, or 0.07%, to close the day at 5,137.?The breadth of the market remained weak throughout the trading session due to lack of participation. In the last one week, benchmark indices increased by over 1%. The NSE?s cash segment reported a turnover of over Rs 12,500 crore, down by 1.32%, against previous session, while the average daily turnover in the last six months stood at approximately Rs 15,700 crore.
However, NSE?s derivatives segment reported the turnover of over Rs 64,600 crore, up by over 2.37% compared to Thursday?s turnover, while the average daily turnover in the last six months stood at approximately Rs 76,100 crore.