Foreign funds investments in September at $6.97 mn

October 2nd, 2011 - 4:59 pm ICT by IANS  

Sensex Mumbai, Oct 2 (IANS) With Indian markets trading volatile for most of September, foreign institutional investors (FIIs) sold in droves and net investments from overseas funds in the month stood at a paltry $6.97 million.

FIIs were bearish in August and had pulled out $2.48 billion. According to data available with the Securities and Exchange Board of India (SEBI), overseas funds participation in Indian stock markets is now at a low $51.3 million.

Data available for the four trading days of last week showed net FII outflows at $372.92 million.

High interest rates and signs of slowing growth in India and economic turmoil back home have resulted in FIIs pulling out of equities markets.

“The global worries like flattering growth in US, persisting European region debt crisis, moderating growth in emerging nations and domestic worries like high inflation, rising interest rates, expectations of lower growth in corporate profits, moderating industrial growth and fiscal slippage are some of the key factors that are weighing on the markets,” said a note from SMC Investments.

FII inflows have been tardy this year compared to to the record $28.83 billion overseas funds pumped into the Indian markets in 2010.

The effects of weak FII inflows has been evident on the key benchmark equities indices.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) has fallen almost 20 percent or 4,055 points in 2011, compared to its close on Dec 31, 2010 at 20,509.09 points.

It closed Sep 30 at 16,453.76 points.

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