Overseas investors sold a net 3.72 billion rupees ($72.1 million) of Indian stocks yesterday, reducing their investment in the equities this year to 440.9 billion rupees, according to the nation’s market regulator.
Foreigners bought 19.3 billion rupees of shares and sold 23 billion rupees, the Securities & Exchange Board of India said on its website today. Foreign funds sold a net 2.36 billion rupees of bonds, paring their inflow into debt this year to 194.4 billion rupees, the data show. They put 421 billion rupees in bonds in 2011.
The BSE India Sensitive Index has risen 12 percent this year as foreign funds have poured record amounts of money into Indian shares even as corporate-profit growth slows, interest rates remain at a three-year high, oil prices jump and the government struggles to tackle a widening fiscal gap.
Foreigners have invested 4.885 trillion rupees in stocks and 1.402 trillion rupees in bonds since they were allowed into the country in 1993.
India’s $1.2 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 to the biggest annual slump of 52 percent.
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 Sensex, the second worst annual loss, and sent the rupee to an all-time low.
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.