Gujarat retail investors wary of markets

rven as markets have, overall, maintained gaining streak in 2010 - the BSE Sensex went up by another 146 points on Tuesday, after scaling a 32-month high on Monday — retail investors have either largely remained on the sidelines or in a profit-booking mode.

FIIs have been the main driving force in the markets during the last one year, having poured in huge sums in equities through the secondary market (BSE and NSE).

According to figures available from BSE, FIIs and domestic institutions have on a net basis bought equity shares worth over Rs34,000 crore on the BSE and NSE between October 2009 and September 2010. Out of it, FIIs alone account for Rs30,884 crore, while domestic financial institutions (DFIs) account for Rs3,306 crore.

On the other hand, retail investors have sold shares worth over Rs11,000 crore on a net basis during this period. Having burnt their fingers in the market meltdown of 2008, they are wary of the markets, leading to their limited participation on the bourses. They have been booking profit on every rise, so as not to be caught off-guard if the markets plunge again.

As per data from BSE, retail investors have net sold
stocks worth Rs11,776 crore between October 2009 and September 2010.