Foreign funds sold $620 mn worth equities in first week of May
May 8th, 2011 - 6:36 pm ICT by IANSMumbai, May 8 (IANS) Foreign institutional investors (FIIS) sold stocks worth $620 million during the week ended Friday in sync with the bearish sentiments in the Indian equities markets post the rate hike effected by the central bank Tuesday.
According to statistics available with the Securities and Exchange Board of India (SEBI), FIIs were net sellers all throughout the week barring Tuesday, when they were net buyers, but only by a modest $2.6 million.
The Reserve Bank of India (RBI) had May 3 hiked the repo and reverse repo rate by 50 basis points in a bid to tame inflation and said growth could moderate to about 8 percent for the current fiscal.
“The sell-off was clearly triggered by higher than expected rate hike of 50 basis points by the RBI. Global markets were also weak and posted losses in the range of 2-2.5 percent for the week,” Sanjeev Zarbade, vice president, private client group research, Kotak Securities.
Following are the net sales recorded: Monday ($43.9 million), Wednesday ($282.32 million), Thursday ($156.98 million) and Friday ($ 139.74 million).
FIIs began the fiscal year with a buying spree, lapping up stocks worth over $1.6 billion in April. In March too, such funds had bought stocks worth a handsome $1.5 billion.
However, in February, FIIs were net sellers to the tune of over $1 billion and sold a similar quantum in January as well.
As a result, in a little over four months of 2011, the net transactions by such institutions has been in the negative, with FIIs being net sellers to the tune of $519 million.
- Foreign funds sell over $260 mn in equities during week - Dec 18, 2011
- Foreign funds sell $329.5 mn worth of stocks during week - Jun 19, 2011
- Overseas funds turn bearish, pull out $2.48 bn in August - Aug 28, 2011
- Bullish foreign investors pump in over $5.5 bn into Indian markets - Feb 26, 2012
- Overseas funds sold $1.5 bn in August - Aug 21, 2011
- Overseas investors bullish, pump in over $1.78 bn - Jan 29, 2012
- Overseas funds bought Indian stocks worth $282 mn during week - Jul 31, 2011
- Foreign funds investments in September at $6.97 mn - Oct 02, 2011
- Sensex plunges 353 points as RBI rate hike spooks markets (Roundup) - Jul 26, 2011
- Foreign funds pump in over $1.16 bn till Jan 20 - Jan 22, 2012
- Overseas funds sell $22.39 million in equities - Sep 25, 2011
- Foreign funds inflow slackens even as markets gain - Feb 20, 2011
- Overseas funds sell over $259 million in equities - Sep 18, 2011
- Sensex sheds nearly 4 percent on weak domestic, global cues (Weekly market review) - Dec 10, 2011
- FIIs bought stocks worth $1 bn in June - Jul 03, 2011
Tags: bank of india, basis points, bearish sentiments, buying spree, exchange board, foreign institutional investors, four months, global markets, group research, mumbai, net sales, private client group, rate hike, rbi, repo, reserve bank of india, sebi, securities and exchange, securities and exchange board of india, tame inflation