Foreign Funds continue to exert selling pressure on the bourses. Through this week they intensified their selling following the Bihar election results and on fears that there may be an interest rate hike in the US.
On Friday, Nov 13 they net sold in the markets to the tune of Rs 740 crores, while domestic institutions bought shares worth Rs 70 crores.
Foreign Funds or FIIs as they are popularly known have sold shares aggressively in the last few months after making heavy purchases in the early part of the year. They also purchased heavily last year on hopes that the new government would push the reforms agenda and results would be superlative.
However, FIIs have been disappointed as neither corporate results have taken off and the Bihar elections have made matters worse for the Narendra Modi government.
In fact, in the months of Aug and Sept, FIIs sold aggressively to the tune of a total of Rs 23,000 crores. Year to date foreign funds have invested close to Rs 34,000 crores in the equity market.
With a likely hike in interest rates in the US in Dec, it is highly possible that there might be more selling pressure from FIIs.