Bloomberg News

Foreign Funds Sell Net 868 Million Rupees of Indian Equities

January 02, 2012

Jan. 2 (Bloomberg) -- Overseas investors sold a net 868 million rupees ($16.3 million) of Indian stocks on Dec. 30, the nation’s market regulator said.

Foreigners bought 9.79 billion rupees of shares and sold 10.7 billion rupees, the Securities and Exchange Board of India said today. They sold a net 8.13 billion rupees of bonds.

The BSE India Sensitive Index has dropped 21 percent last year, as global investors withdrew 27.1 billion rupees from equities, 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. Foreigner purchased 421 billion rupees of bonds last year.

India’s $1 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 4.443 trillion rupees in stocks and 1.2 trillion 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.

--Editor: Hari Govind

To contact the reporter on this story: Paresh Jatakia in Mumbai at pareshj@bloomberg.net

To contact the editor responsible for this story: Arijit Ghosh at aghosh@bloomberg.net


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