Foreign Investors Sell Net 1.48 Billion Rupees of Indian Stocks

Overseas investors sold a net 1.48 billion rupees of Indian stocks yesterday, paring their investment in the equities this year to 630.3 billion rupees, or $12.3 billion, according to the nation’s market regulator.

Foreigners bought 21.5 billion rupees of shares and sold 23 billion rupees, the Securities & Exchange Board of India said on its website today. They purchased a net 106.1 billion rupees of stocks last month.

Offshore funds sold a net 9.96 billion rupees of bonds yesterday, reducing their inflow into debt this year to 238.8 billion rupees, the data show.

The benchmark BSE India Sensitive Index (SENSEX) has increased 12 percent this year, helped by the biggest overseas equity flows among 10 Asian markets tracked by Bloomberg. Flows surged to a record in 2010, making the Sensex the best performer among the world’s top 10 markets. The largest-ever outflow in 2008 led to the biggest annual slump of 52 percent.

Foreigners have invested 5.074 trillion rupees in stocks and 1.446 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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