FIIs book profit; sell stocks worth Rs 4,000 cr in two weeks

Last Updated: Sunday, August 23, 2009 - 12:22

New Delhi: Booking profits from the surge in
the markets early this month, overseas investors pulled out a
net of over Rs 4,000 crore from Indian stocks over the past
two weeks.

So far in August, the foreign institutional investors
(FIIs) have been net sellers on eight trading sessions, of a
total of 15, data available with the Securities and Exchange
Board of India (SEBI) shows.

FIIs were net sellers of stocks worth Rs 1,112 crore in
the last week alone, which followed a net sale worth about Rs
3,000 crore in the previous week.

Marketmen, however, feel that the outflow in the past few
weeks is unlikely to deter the fund flow in the coming days as
overseas investors are still flush with funds and are waiting
for cheaper valuations to enter the market.

"After pulling out money from the emerging markets, FIIs
are now siting on huge profits. They are confident of the
India growth story and will turn net investors going ahead,"
SMC Global Vice-President Rajesh Jain said.

With the foreign funds taking back their money to their
home countries, the Bombay Stock Exchange`s barometer Sensex
lost 2.74 percent so far in August and is currently trading
around the 15,000 levels. Last week, the Sensex fell by 1.11
percent to close at 15,240.83 points.

Last week, FIIs were the gross buyer of shares worth Rs
10,116.9 crore, while they sold equities valued at Rs 11,229
crore, resulting in a net sale of Rs 1,111.9 crore.

"FIIs are dominant force in market and their buying and
selling would continue to impact the market movement.

However,
they are looking on emerging economies now and would invest in
these countries as their returns are expected to be higher in
the coming days," Unicon Financial CEO G Nagpal said.

Till now this year, FIIs have remained bullish on the
Indian equities and the overseas investment in the stock
market touched Rs 35,460 crore (USD 7.3 billion) in 2009.

Moreover, debt market emerged as a preferred investment
destination for overseas investors last week as the segment
saw a net inflow of Rs 542 crore.

Interestingly, FIIs, so far this year, have sold debt
instruments worth Rs 715.40 crore, as per the SEBI data.

Bureau Report



First Published: Sunday, August 23, 2009 - 12:22

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