Foreign Investors Sell Net 1.36 Billion Rupees of Indian Stocks

Overseas investors sold a net 1.36 billion rupees ($25 million) of Indian stocks yesterday, paring their investment in equities this year to 437 billion rupees, according to the nation’s market regulator.

Foreigners bought 18.3 billion rupees of shares and sold 19.7 billion rupees, the Securities & Exchange Board of India said on its website today.

Funds purchased a net 904 million rupees of bonds, taking total inflows to debt this year to 170 billion rupees, the data show. They put 421 billion rupees in bonds in 2011.

Foreigners have invested 4.881 trillion rupees in stocks and 1.378 trillion rupees in bonds since they were allowed into the country in 1993.

India’s $1.1 trillion stock market, Asia’s fifth-biggest, is influenced by investments from overseas. Inflows from abroad reached a record in 2010, making the BSE India Sensitive Index (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.

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.