The Hindu Business Line : Basket selling weakens indices

Both the BSE and NSE indices dipped sharply from day's high level. According to stockbrokers, a foreign institutional investor having a huge exposure in the Indian market indulged in selling through `basket trading' on Nifty stocks.

In `basket trading', an investor can buy/sell all shares in an index in the same proportion.

Dealers said the FII sold these shares to book profits so as to shore up its performance for the September quarter. According to them, this fund is also selling in other emerging and Asian markets. Brokers said they also feel that other FIIs would also indulge in selling ahead of the month end.

K.S. Badri Narayanan

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