Foreign Investors Sell Net 6.95 Billion Rupees of Indian Stocks

Overseas investors sold a net 6.95 billion rupees ($122.1 million) of Indian stocks yesterday, paring their investment in the equities this year to 419.9 billion rupees, according to the nation’s market regulator.

Foreigners bought 40.3 billion rupees of shares and sold 47.3 billion rupees, the Securities & Exchange Board of India said on its website today. Foreign funds bought a net 5.8 billion rupees of bonds, taking total inflow into debt this year to 208.6 billion rupees, the data show.

They sold a net 3.47 billion rupees of shares last month and 11.1 billion rupees in April after being buyers in each of the first three months of 2012. They put 421 billion rupees in bonds in 2011.

Foreigners have invested 4.864 trillion rupees in stocks and 1.416 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 flows from overseas. Flows surged to a record in 2010, making the BSE India Sensitive Index (SENSEX) the top performer among the world’s top 10 markets. The largest-ever outflow in 2008 led to 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

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