FIIs Bullish. Pour in Rs 2,600 crore in May

From Times of India :

FIIs pour in Rs 2,600 crore in May; investment nears $12bn in 2013

The total foreign investor investments in the country's equity market has reached Rs 63,643 crore (USD 11.8 billion) since the beginning of 2013.
PTI | May 5, 2013, 10.37AM IST

NEW DELHI: Overseas investors have pumped in a staggering Rs 2,600 crore (USD 483 million) in the Indian stock market during the first two trading sessions of the month amid political and economic worries.

With this, the total foreign investor investments in the country's equity market has reached Rs 63,643 crore (USD 11.8 billion) since the beginning of 2013.

During May 2-3, foreign institutional investors (FIIs) were gross buyers of shares worth Rs 8,475 crore, while they sold equities amounting to Rs 5,869 crore, translating into a net inflow of Rs 2,606 crore (USD 483 million), according to the data available with market regulator Sebi.

Hi.. I want to know, what is meant by Stock(cash) and Stock (futures)..

Thnx..

In simple terms stock futures are a financial instrument the price of which is linked to stocks. Its prices move in relations in direct co-relation to the stocks, though the stock futures price may be more or less than the stock by a small margin.

Generally one cannot sell shares without having them. However, this is not the case in stock futures. One can sell first if one is bearish, and buy back the futures at a later date or on expiry.

The advantage of buying/selling futures is that one does not have to pay 100% of the money, but about 25-40% of the stock price. If after buying the futures, the price moves higher, then the profit (MTM) is added to your account, if loss, then it is deducted.

More here :

http://en.wikipedia.org/wiki/Stock_market_index_future