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Oct. 5 (Bloomberg) -- Overseas investors sold a net 9.66 billion rupees ($196 million) of Indian equities yesterday, taking their outflow from equities this year to 23.5 billion rupees, the nation’s market regulator said.
Foreigners bought 20.8 billion rupees of shares and sold 30.5 billion rupees, the Securities and Exchange Board of India said today. They sold a net 3.5 billion rupees of bonds, paring their flows into debt this year to 170 billion rupees.
The BSE India Sensitive Index has dropped 23 percent this year on concern a slowdown in the U.S. and Europe’s debt crisis may erode company profits already threatened by the most aggressive interest-rate increases among major Asian economies.
Overseas funds withdrew a net $2.4 billion from Indian stocks in August, the most since October 2008, the data show. That caused the Sensex to drop 8.4 percent that month, making the gauge’s worst August in at least a decade.
India’s $1.2 trillion stock market, Asia’s fourth-biggest, is influenced by foreign fund flows. Inflows from abroad surged to a record $29.4 billion in 2010, making the Sensex the best performer among the world’s top 10 markets. The largest-ever outflow in 2008 led the biggest annual slump of 52 percent.
Foreign funds have placed 4.448 trillion rupees in stocks and 956.6 billion rupees in bonds since they were allowed into the country in 1993.
The regulator provides data on shares bought and sold by large investors, including trades in the primary and secondary markets, with a delay of at least a day.
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