Foreign funds sell over $260 mn in equities during week
December 18th, 2011 - 3:50 pm ICT by IANS
Mumbai, Dec 18 (IANS) With Indian equities markets in a firm bearish grip because of slowing domestic growth and bleak global economic conditions, foreign funds pulled out over $260 million during the week ended Dec 16.
The effect of the sell-off was evident on the markets. The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) fell 4.45 percent or 722.11 points in the week ending Friday at 15,491.35 points — the lowest in 25 months.
At the National Stock Exchange, the 50-scrip S&P; CNX Nifty also tumbled to a two year-low and closed the week with a 4.42 percent or 215.1 points loss at 4,651.6 points.
Foreign institutional investors (FIIs) have been far from optimistic about Indian stocks as the economy started showing signs of slowdown and interest rates shot up after 13 successive rate hikes by the Reserve Bank of India (RBI) since early 2010.
The gross domestic product grew by the slowest in nine quarters at 6.9 percent in the July-September period. Industrial output fell into the negative, recorded at (-) 5.1 percent in October.
Although, the RBI hit a pause button in the last review on Friday, companies are still burdened with high cost of credit.
According to data available with the Securities and Exchange Board of India (SEBI), FIIs have been net buyers in December to the tune of a paltry $174.41 million. However, for the whole of 2011 they are net sellers, having sold off stocks worth $214.9 million as of Dec 16.
Compare this to the record $28.83 billion overseas funds pumped into the Indian markets in 2010.
The lack of enthusiasm for Indian stocks from overseas funds has seen equities markets settle into a bearish trend for most of the year. The Sensex has lost over 22 percent or 4,373.5 points from last year’s levels.
FIIs were net sellers in November off loading stocks worth $787 million, while in October they had poured in $346.51 million.
- Foreign funds investments in September at $6.97 mn - Oct 02, 2011
- Overseas funds sold $1.5 bn in August - Aug 21, 2011
- Overseas funds sell $22.39 million in equities - Sep 25, 2011
- Foreign funds sell $329.5 mn worth of stocks during week - Jun 19, 2011
- Sensex loses 722 points; slumps to two-year low (Weekly market review) - Dec 17, 2011
- Overseas funds turn bearish, pull out $2.48 bn in August - Aug 28, 2011
- Foreign funds sold $620 mn worth equities in first week of May - May 08, 2011
- Foreign funds pump in over $1.16 bn till Jan 20 - Jan 22, 2012
- Overseas funds bought Indian stocks worth $282 mn during week - Jul 31, 2011
- Sensex rises 285 points, snaps four-day fall (Roundup) - Feb 28, 2012
- Overseas funds sell over $259 million in equities - Sep 18, 2011
- FIIs bought stocks worth $1 bn in June - Jul 03, 2011
- Sensex tumbles to two-year low, despite rate hike pause (Roundup) - Dec 16, 2011
- Sensex rises for fourth straight week; up 495 points (Weekly market review) - Jan 28, 2012
- Foreign funds infuse over $2.6 bn in Indian equities - Sep 19, 2010
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