FIIs turn Net Sellers of Equity-Sensex goes down

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FIIs turn Net Sellers of Equity-Sensex goes down

AIT News Network

BSE MUMBAI. When FIIs were pumping money in stock market and were Net Buyers of Equity worth Crores ; the Sensex was moving Up , Up and Up on weekly basis. Many thought that FIIs were playing blind in Indian stock market. But when FIIs have turned Net Sellers of Equity and have started booking profit backed by massive sell off of shares in global markets; Sensex has to go down. As expected; the Sensex plunged by 600 Points in early trading on 16th August and most of the shares were down by 4 to 5 per cent. The Bears have taken command of the market and some brokers have also started off-loading their positions anticipating a further fall and stop loss button has also been pressed by many investors.

After all, FIIs have not come to India to lose money but to make money and in stock market you make money by selling the shares when they touch their peak which happened in last couple of days.

Though Retail Investors are still adopting “wait and watch” approach; FIIs have been aggressive in selling and profit booking if the FII data on sale and purchase is any indication.

On 17th August FIIs have gone for massive profit booking and are Net Sellers of Equity worth Rs 2850 Crore.

FII data for 16th August 2007 is as under:

Gross Purchases(Rs Crores)
Gross Sales(Rs Crores)
Net Investment (Rs Crores)
Equity
1771.40
1898.90
-127.50
Debt
15.10
1.90
13.20

FIIs figures for 14th August 2007 are as under:

	Gross Purchases(Rs Crores)	Gross Sales(Rs Crores)	Net Investment (Rs Crores)
Equity	1669.80	2190.00	-520.20
Debt	0.00	407.70	-407.70

FII data for 13th August 2007 is as under

	Gross Purchases(Rs Crores)	Gross Sales(Rs Crores)	Net Investment (Rs Crores)
Equity	3197.60	3605.70	-408.10
Debt	0.00	164.90	-164.90

On 2nd August 2007 FIIs were Net Sellers of Equity worth Rs 982 Crore; on 3rd August 2007 FIIs Net sold shares worth Rs 419 Crore. On 7th August 2007; FIIs were Net sellers of Equity worth Rs 1166 crore and on 8th August 2007 FIIs sales figures for shares were minus Rs 123 Crore.

If FII trends are any indication; the market is heading for a downswing and many investors may regret not booking profit at a right time.