Foreign institutional investors (FIIs/FPIs) are on a buying spree on Indian stock markets since the past few trading sessions, notwithstanding analysts at home cautioning of a free fall if the BJP fails to win in Uttar Pradesh (UP) Assembly elections. In contrast, domestic institutional investors (DIIs) have been sellers for most of the current month.
In the past five trading sessions this month, FIIs have bought Indian equities worth Rs 2,938 crore on a net basis, according to data published by the National Stock Exchange (NSE).
On the other hand, DIIs have sold Indian stock worth Rs 2,121 crore till now.
On Tuesday, FIIs were net buyers of stocks worth Rs 920.46 crore, while DIIs went on a selling spree, ending with a net sell position of Rs 1,073.75 crore, according to NSE data.
The BSE Sensex closed 49 points lower at 28,999 while the NSE ended 16 points down at 8,947.
The seventh and last phase of elections will be held for 40 Assembly seats in Uttar Pradesh on Wednesday. The seats include eight in Varanasi, where Prime Minister Narendra Modi campaigned extensively for three days till Monday.
In a separate interview to ANI, BJP president Amit Shah claimed his party would win comprehensively in UP.
"We will form government in Uttar Pradesh with two-third majority. Be it Awadh, Rohilkhand Bundelkhand or Kashi, the BJP is leading everywhere. We will form government in the state," Shah told the agency.
An analyst with brokerage Angel Broking said that markets have turned cautious ahead of the election results, due to be declared on Saturday (March 11).
"The markets are keenly awaiting the outcome of the exit poll announcements...and the street has already factored in a BJP win in the key state of UP. Any disappointment however on this front can cause significant volatility and disruption in the positive momentum that has been created and can have a short term negative impact in the way the markets react," Mayuresh Joshi, Fund Manager at Angel Broking said in a note.
