Foreign Investors Sell Net 3.39 Billion Rupees of Indian Stocks

Overseas investors sold a net 3.39 billion rupees ($65 million) of Indian equities yesterday, paring their investments in equities this year to 444.9 billion rupees, according to the nation’s market regulator.

Foreigners bought 12.8 billion rupees of shares and sold 16.2 billion rupees, the Securities & Exchange Board of India said on its website today. Foreign funds sold a net 560 million rupees of bonds, reducing their inflow into debt this year to 187 billion rupees, the data show. They put 421 billion rupees in bonds in 2011.

The BSE India Sensitive Index (SENSEX) has risen 11 percent this year as foreign funds poured record amounts of money into Indian shares even as corporate-profit growth slows, interest rates remain at a three-year high, oil prices jump and the government struggles to tackle a widening fiscal gap.

Foreigners have invested 4.889 trillion rupees in stocks and 1.394 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

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.