Brokers not impressed with FIIs’ renewed India interest
FIIS MAY have started taking renewed interest in Indian equities since the past couple of weeks. But if you ask brokers, they are certainly not impressed. This is the lull before the storm, they say.
The market is abuzz with talks of foreign investors, especially hedge funds, looking at making small amount of gains in the short term. FIIs turning net buyers in December is no sign of them turning bullish on the India story, said a dealer who tracks institutional trades.
The intention is not to build long-term positions but to sell at every rise in the coming months. It is believed that news of the US government refusing to bail out automakers has come as a big shock and most hedge funds have asked their India offices to cut positions as soon as possible.
The benchmark Sensex has already gained more than 7% in the past one week. FIIs have been net buyers at more than Rs 1,500 crore in December. In November, they were net sellers at Rs 5,459 crore.
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