Foreign Investors Sell Net 796 Million Rupees of Indian Stocks

Overseas investors sold a net 796 million rupees ($16.1 million) of Indian equities yesterday, paring their investments in equities this year to 103.6 billion rupees, according to the nation’s market regulator.

Foreigners bought 25.8 billion rupees of shares and sold 26.6 billion rupees, the Securities & Exchange Board of India said on its website today. They sold a net 4.71 billion rupees of bonds, reducing their inflow into debt this year to 159.7 billion rupees, the data show.

Offshore funds pulled out 27.1 billion rupees from local equities last year, compared with record flows of 1.33 trillion rupees in 2010, as Europe’s debt crisis threatened the global economy and cooled demand for emerging-market assets. That led to a 25 percent drop in the BSE India Sensitive Index, the second-worst annual loss, and sent the rupee to an all-time low.

India’s $1.1 trillion stock market, Asia’s fifth-biggest, is influenced by flows from overseas. Inflows from abroad 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 the biggest annual slump of 52 percent.

Foreign funds have placed 4.547 trillion rupees in stocks and 1.367 trillion rupees in bonds since they were allowed into the country in 1993. They invested 421 billion rupees in bonds last year.

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.

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