Indian equity indices ended the day on a flat note after witnessing volatility throughout the trading session. Overseas investors kept their selling pressure, as Indian equity markets was seen at high valuation levels.
According to Bloomberg data, Sensex is currently valued 19.79 times the financial year 2009-10 earnings, higher than its peers in Asia, excluding Japan. Hang Seng trades 13.36 times its earnings for the current year and the Shanghai Se Composite at 17.01 times. Korea?s Kospi index is at 10.08 times, lowest among the major Asian markets.
Despite the overall market breadth being strong, foreign institutional investors (FIIs) continued their selling for the ninth consecutive trading session. According to the provisional figures from BSE, FII were net sellers at over Rs 490 crore. The total net sale for the past nine days now amounts to Rs 11,000 crore.
Weak cues from Asian markets also caused uneasiness amongst traders as further tightening Chinese policy is feared. Shanghai Se Composite ended the day at 2,941.36 it?s lowest since October 2009.
The BSE Sensex was down by 1.93 points, or 0.01%, to end the day at 16,356.03. However, the broader S&P CNX Nifty closed the day at 4,899.70 gaining 17.65 points, or 0.36%.
The NSE?s derivatives segment reported a turnover of over Rs 6,000 crore down by 34% compared to the previous session, while the average daily turnover in the last six months stood at around 74,600 crore.