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Journalism of Courage
MUMBAI, JUNE 11: Foreign institutional investors (FIIs) were quietly selling stocks when Indian stock markets witnessed a rally last week. FIIs turned net-sellers at Rs 156.30 crore for the week ended June 8, when the Sensex saw a persistent bull run during the whole week and edged up by 403.34 points to 4,728.81. This is in contrast to their pumping in Rs 652.6 crore in the previous week.
“It seems FIIs used the bull rally last week to get out of their positions. It means the market is not yet ready for a sustained bull run,” said a market source.
Meanwhile, share prices are expected to consolidate next week after rising for six consecutive days, but analysts warned it was not yet time to start buying. The benchmark 30-stock Bombay Stock Exchange Index ended higher on Friday for the third consecutive week, recovering smartly from its biggest ever weekly fall of 12.5 percent in May. The index ended the week up 6.2 per cent at 4,729.63 points.
Analysts said the index is likely to move in a range of 300 points between 4,500-4,800 with large corrections looking a distinct possibility. "I don’t see the index going beyond 4,950. If it does, I will ask my clients to book profit," said Nilesh Jain, vice-president, institutional sales at Motilal Oswal Securities.
"It has run up for six days. It has to correct now before it can rise to attempt the 5,000 level," said the chief dealer of a domestic brokerage.
Most infotech stocks ended the week higher spurred by gains of the tech-heavy Nasdaq and cheaper values. Satyam Computer Services ended the week 22.84 per cent higher at Rs 3,216.05, Infosys Technologies closed 4.45 per cent up at Rs 7,860.15, Wipro recorded a big jump rising 27.21 per cent to Rs 2,379.
But analysts warned of a correction in most tech stocks as concern over overvaluation once again reared its head.
