FIIs pull out 60.6 mn

MUMBAI, JANUARY 14: Foreign institutional investors FIIs pulled out US 60.6 million Rs 263 crore in January so far. Brokers point out that while playing the contrarion game, the FIIs are also churning their portfolio very actively. This churning is two pronged. Once they switch from one sector to another as has been witnessed in the last few days, moving away from IT to non-IT stocks, especially FMCG.

Two, within the IT sector they are moving to new bets, booking out of the leaders. For instance, FIIs on Tuesday sold Infosys and entered HCL Technologies. The latter made a debut on the bourses at an average premium of 170 per cent to its offer price. On the second day, the HCL Technologies scrip hit the upper end of the circuit on sustained buying by institutions.

Market players also point out that the FII strategy will continue to focus on select stock-picking. A clarity will emerge only after the dust over the technology stocks the world over settles down and the direction from the Fed on thecourse interest rates will take. The Fed review meeting is slated for the first week of February.