FIIs book profit 1st time after Fed cuts

MUMBAI: For the first time since the US Federal Reserve cut its funds and discount rates by 50 basis points on September 18, foreign institutional investors were net sellers in the Indian markets.

As per the provisional figures available on the NSE website, the foreign institutional investors net sold stocks worth Rs 234 crore.

The sensex closed in the red losing 6 points at 19052.

While they bought shares worth Rs 5,665 crore, they sold more at Rs 5,899 crore. This could well be the beginning of the end.

Says Ramanathan Ganeshan, director & CEO, Systematix Shares & Stocks, “This is a liquidity driven bull-run. The fund flows are continuous. The FIIs don’t want to be left out as they feel there is great future potential in our markets.

As this strong appetite cools down both because of the stretched valuations and also due to the allocations that have already happened, the flows will come down, which, in itself, will mark the beginning of the correction.”

The Federal Reserve in the US cut interest rates by 50 basis points on September 18, triggering unprecedented capital flows into Indian stock market.

Funds hungry flush with cheap funds rushed in to cash in on the.

In just under a month till Monday, the foreign institutional investors had purchased equities worth a whopping Rs 34,397 crore.

Most of this money has flown into select large-cap stocks, which have hit stratospheric levels. The Sensex during the period galloped from 15669 to 19058.