Dealers Check: FII Flows to Remain Muted

The Sensex and Nifty were trading on a subdued note in trades on Monday. In the last week, the Indian benchmark indices saw major selling pressure and the Sensex and Nifty registered their fresh52-week low.

The selling pressure in the Indian share markets is due to foreign institutional investors selling Indian shares aggressively. In the last four trading sessions, the FIIs sold shares worth Rs 4,000 crore.

Weaker-than-expected domestic GDP numbers also added to the already prevailing pessimistic sentiment on the Dalal Street.

Amid selling pressure, NDTV caught up with dealers on Dalal Street to get a sense of the sentiment prevailing in the stock markets:

1) Dealers are cautious as they are scared after the movement of last two-three weeks and the trading activity is not great.

2) People are using bounces in the markets to settle of their positions if there are any, especially in stocks which have cracked a lot.

3) Most of the traders are staying on the side lines as they have lost money in this turmoil and very selective buying is visible. Mostly people are not taking fresh long positions.

4) Dealers say that they do not expect FIIs to post any major buying figure till the FOMC meet on September 17.

5) However, the pace of fund outflows by the foreign investors in the emerging market equities has slowed down. Last to last week the FIIs sold $10 billion worth of emerging market shares while during the week gone by they sold shares worth $5 billion.