FIIs become sellers in derivatives market
Mumbai: While foreign instituional investors kept steady the inflows into the cash market in 2004, they have turned net sellers in the derivatives market in the last 10 trading sessions (since December 29 last), a financial newspaper has reported. The net selling by FIIs in the derivatives is over Rs 1,000 crore during this period. A look at the trading pattern of FIIs in the derivatives segment shows that they have been net sellers continuously since December 29, 2003.

But during this period, FIIs were continuously buying in the cash market. Derivatives analysts said this trend (net selling in derivatives market) is seen for the first time since FIIs started investing in this segment. By doing this they are hedging their positions - that is buy in the cash market and sell in the derivatives market.
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