"We are suggesting investors to use this volatility to add equity positions. Valuations are a cause of concern in the immediate term, but the market remains in an attractive spot from a 12-18 month perspective," said Rajesh Cheruvu, head of equities at Sanctum Wealth Management.Provisional data showed FIIs bought shares worth Rs 212 crore and DIIs sold Rs 598 crore. The rupee also fell for the third session, ending 38 paise lower at 67.14 per dollar.With the May Consumer Price Index (CPI) inflation also surprising negatively at 5.76%, compared with a revised figure of 5.47% in April, market participants believe the nervousness is likely to continue. MUMBAI: Benchmark indices fell for the third consecutive session, tracking sell-off in global markets which lost 1-3% on concerns over whether voters in Britain will choose to leave the European Union in the referendum on June 23.As investors dumped risky assets amid heightened volatility, the India VIX, or 'the fear index', climbed 3.8% to 16.58, the highest since May19. "The Brexit vote is a far bigger trigger which could cause volatility in the markets," said Kunj Bansal, executive director at Centrum Asset Management.Amit Gupta, head of derivatives at ICICIdirect, said the India VIX could rise to 20-levels if the index breaks the 14-18 range it has been moving in since March.Fund managers said they are advising clients to use any correction to buy stocks.

Source: Economic Times June 13, 2016 23:13 UTC