Foreign Funds Sell Net 7.56 Billion Rupees of Indian Equities

Overseas investors sold a net 7.56 billion rupees ($144.9 million) of Indian stocks on Nov. 25, increasing their withdrawals from equities this year to 24.1 billion rupees, the nation’s market regulator said.

Foreigners bought 13.9 billion rupees of shares and sold 21.5 billion rupees, the Securities and Exchange Board of India said today. They bought a net 11.2 billion rupees of bonds, taking total flows into debt this year to 198.6 billion rupees.

The BSE India Sensitive Index (SENSEX) has dropped 21 percent this year, on concern a slowdown in the U.S. and Europe’s debt crisis will erode company profits already threatened by the most aggressive interest-rate increases among major Asian economies.

India’s $1.2 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 4.447 trillion rupees in stocks and 985.3 billion 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.

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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