One of the promising features of the current market is that domestic institutions seem to have turned buyers after a very long time. They have been net buyers this month with inflows exceeding by Rs. 80 crore till early this month. That's admittedly a small amount, but its significance lies in the fact that domestic institutions have been net sellers every month this financial year expect in September when their net purchases amounted to a microscopic Rs. 28 crore. This financial years net sales by domestic institutions amounted to Rs. 2964 crore, which has substantially offset the net inflows of Rs. 3187 crore by FIIs. The net purchases by domestic institutions could indicate that money is once again flowing into equity funds, eager not to miss the widely expected rally. Part of this season could be a shift in investor portfolios, as people lighten up on debt and put that money into equity.

Domestic institutions have been consistently selling only in all the months in this financial year.