Foreign investors sell Indian index futures

Reuters Market Eye - Foreign institutional investors (FIIs) have sold 29 billion rupees worth of index futures in the last two trading sessions, indicating they are bracing for lower levels in cash shares in the near term, dealers say.

Dealers say that raises some concerns after FIIs were net sellers of 0.86 billion rupees of stocks on Monday and about 5 billion rupees on Friday, exchange and regulatory data showed.

FIIs have been a key support for markets after buying a net 15.27 billion rupees worth of shares this year as of Monday's close.

The rupee's oves are also being closely watched as any further weakness is likely to trigger concerns about foreign fund outflows and raise issues about funding the current account deficit, traders add.

(Reporting by Abhishek Vishnoi)