Overseas investors sold a net 2.27 billion rupees ($41.8 million) of Indian stocks yesterday, increasing their withdrawals from the equities this year to 19.5 billion rupees, the nation’s market regulator said.
Foreigners bought 30 billion rupees of shares and sold 32.3 billion rupees, the Securities and Exchange Board of India said today. They bought a net 104 million rupees of bonds, taking total flows into debt this year to 369 billion rupees.
The BSE India Sensitive Index has dropped 24 percent this year on concern a slowdown in the U.S. and Europe’s debt crisis may erode company profits already threatened by the most aggressive interest-rate increases among major Asian economies.
India’s $1.2 trillion stock market, Asia’s fourth-biggest, is influenced by foreign fund flows. Inflows 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 to the biggest annual slump of 52 percent.
Foreign funds have placed 4.452 trillion rupees in stocks and 1.156 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.