As FIIs have taken selling route in Indian stocks, life insurance companies are moving in to make some good pickings. However, such is not the case with the domestic mutual funds. This situation among the domestic institutional investors persists because of the comfortable cash levels and a lesser fear of redemptions enjoyed by the insurance companies as compared to the mutual funds.

In fact, in June so far, Domestic institutional investors bought Rs 2,989 crore worth of equities whereas FIIs have been net sellers for Rs 6,166 crore. Among the domestic institutional investors, Life Insurance Corporation of India has been the biggest buyer followed by ICICI Prudential Life Insurance. Domestic institutional investors have bought stocks worth $4 billion this year so far, of which the insurance companies” share has been more than 60 per cent, according to marketmen.