FII ACTIVITY

Super Sept: FIIs net buy Rs 29.19bn in equities so far

The Indian bourses were on a rampage in the month of September with benchmarks having rallied for fifth consecutive week on back of steady inflow of funds from foreign institutional investors (FIIs). The Nifty added 734.7 points (13.58%) and the Sensex 2446.63 points (13.59%) during the same period.

The strong performance displayed by the Indian markets reaffirmed the confidence among investors abroad. As of September 29, 2010, foreign institutional investors (FIIs) were net buyers to the tune of Rs 4,755.80 crore in equities. They made gross purchase of Rs 10,917.80 crore and gross sales of Rs 6,162 crore.

In the month of September so far, FIIs were net buyers of Rs 29,195.80 crore.

However, on the domestic side, as of September 28, 2010, mutual funds (MFs) were net sellers to the tune of Rs 567.90 crore in equities. They made gross purchase of Rs 467 crore and gross sales of Rs 1,034.90 crore

In the month of September so far, MFs were net sellers of Rs -5,606.30 crore.

The Sensex gained 14% in the month of September. Meanwhile, market participants may take a cautious stance stepping into October as historically this month has been a bit difficult. October is the only month with mostly negative return since 1990.