Foreign Funds Sell Net 4.34 Billion Rupees of Indian Equities

Overseas investors sold a net 4.34 billion rupees ($82 million) of Indian stocks yesterday, taking their withdrawals from equities this year to 29.3 billion rupees, according to data from the nation’s market regulator.

Foreigners bought 19.63 billion rupees of shares and sold 23.97 billion rupees, the Securities & Exchange Board of India said today. They bought a net 1.19 billion rupees of bonds, taking total flows into debt this year to 400.1 billion rupees.

The BSE India Sensitive Index (SENSEX) has dropped 24 percent this year on concern a slowdown in the U.S. and Europe’s debt crisis will erode corporate earnings already threatened by the most aggressive interest-rate increases among major Asian economies.

Flows 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 4.4 trillion rupees in stocks and 1.187 trillion 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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