FIIs behaviour to be watched, IT companies may see buying

Mumbai, Mar 11: Foreign Institutional Investors (FIIs) continued to be bullish on India with a total investment of Rs 1,404.70 crore in the last five trading sessions for which Security Exchange Board Of India (SEBI) data was available.

FIIs have invested around half a billion US dollar or Rs 2,626.40 crore since March one and is primarily responsible for the Bombay Stock Exchange Sensitive Index's highest ever close of 10,765 on Friday.

But, on last Thursday the FIIs were net sellers by Rs 287 crore for the first time in the cash market this month as per market regulator SEBI's data, which may depress market sentiments.

Since FIIs have dictated the proceedings at the Indian stock markets recently, their total selling on Thursday was alarming being highest in a day for this month and over and above Rs 3,000 crore at Rs 3,358 crore, against total buying worth Rs 3,071 crores.

This could trigger another slide next week.

Moreover, their behaviour was getting increasingly unpredictable with their huge selling in the derivatives side of the market in the just concluded week.

FIIs investment patterns are going to be major factor in the markets next week.

The positive factor for the markets will be industrial growth data of 8.3 per cent for January 2006.

Action is back in the information technology counters and could see more buying next week as Cement, Automobile, Capital Goods, FMCG sector are already oversold.

On Wednesday the markets will be closed for 'Holi' celebrations.

UNI