Mumbai, June 9: Foreign institutional investors (FIIs) have been steadily scooping money out of the Indian markets since January.

Although domestic institutional investors have been buying into the markets during that period, they haven’t been as aggressive buyers as the market might have hoped. This is largely because no one is sure about how much downside this market still has.

The FIIs, which invested record sums in domestic stock markets last year, have been net sellers in 2008. Data available from the Securities and Exchange Board of India shows that in the current calendar year till date, their net sales are over $ 4.6 billion.

Although the foreign investors have intensified their sell orders during the past few weeks, domestic institutional investors (DIIs) like the Life Insurance Corporation have not come forward to prop up the battered stocks.

“Everyone of us like to buy at lower levels. The DIIs are perhaps thinking that there is still some correction ahead,” said an analyst. He however, added that these investors had been seen making selective purchases, particularly in some of the frontline stocks in the past few days.

In both the BSE and the NSE, the DIIs have made net purchases worth Rs 2,692.55 crore this month. The net sales of FIIs during the same period have been put at Rs 5,255.70 crore. Analysts add that foreign investors have turned bearish due to “macro factors” that include rising crude oil prices coupled with the prospects of high inflation. What has added to their discomfiture is the falling rupee.