Foreign funds pump out $883 mn in four sessions

October 10th, 2008 - 7:27 pm ICT by IANS  

SensexNew Delhi, Oct 10 (IANS) Foreign funds were net sellers of Indian equity to the extent of $883 million during four days of trading for the week ended Friday, shows the latest data with the markets watchdog.The net sales by foreign institutional investors (FIIs) amounted to $932.8 million during the current month and $10.05 billion during the year, says the Securities and Exchange Board of India (SEBI).

There were 1,530 FIIs registered with the watchdog as on Friday.

“The fatal fall in the markets today was due to the acceleration of outflows by foreign funds, amid fears of credit crisis in the West,” said Ashok Jainani, head of research with leading brokerage, Khandelwal Securities.

“With foreign funds being major players, Indian markets cannot remain insulated from the financial meltdown,” added Nagendra Bhatnagar, chief executive of IDBI Capital.

The sensitive index (Sensex) of the Bombay Stock Exchange (BSE) ended Friday with a loss of 800.51 points, or 7.07 percent, over the previous close. The index, at one point, was down 1,088.60 points.

Statistics with SEBI also shows that foreign funds sold equity worth $278 million Tuesday, after net sales worth $259.30 million the day before. Wednesday saw these funds liquidate stocks worth $135.9 million, followed by $210.1 million Friday.

The Indian equity markets were closed Thursday on account of Dussehra.

The net cumulative investments by foreign funds now stands at $56.28 billion, based on the reports submitted to the markets watchdog by the market custodians till Friday.

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