According to the provisional figures for September, the DIIs, which include insurance companies and mutual funds, sold a net equity of Rs 1,455 crore (Rs 14.55 bilion), whereas the FIIs were the net buyers of Rs 3,476 crore (Rs 34.76 billion) worth equity.

On Friday, DIIs sold shares worth Rs 260 crore (Rs 2.6 billion) while FIIs brought shares worth Rs 1,200 crore (Rs 12 billion).

This is in contrast to August when the markets were hit hard after massive selling by FIIs.This was when the sub-prime crisis had hit the global markets.

In August, FIIs sold net shares over Rs 12,000 crore (Rs 120 billion), but domestic institutions acted as a cushion, buying a net of over Rs 9,000 crore (Rs 90 billion).

Of this, the mutual fund houses bought shares worth over Rs 4,000 crore (Rs 40 billion).

"Fearing yet another market correction, investors want to book profits as the Sensex has bounced back over 1,800 points (from 13,779 on 17 August). Investors are also reluctant to take chances before the US Fed meeting scheduled on September 18 and the results season beginning in the first week of October," said a CEO of a fund house.

Sanjay Sinha, CEO SBI [Get Quote] MF, said that the Fed meet of September 18 was not a major event for the Indian markets as it may just come and go.