MUMBAI: In just three sessions, foreign funds have taken out about $900 million (about Rs 5,400 crore at Monday's exchange rate) from the Indian stock market. The FIIs' move comes on the back of the US Fed's decision to gradually end its easy money policy, combined with the weakness of the Indian rupee and a slowing economy.
On Monday, as a result of a Rs 1,553-crore net outflow from the stock market, the sensex lost 233 points to close at 18,541, over a two-month low for the benchmark. The weakness of the rupee, which closed at a new record low of 59.68 to the dollar, also made investors jittery and prompted them to sell, market players said. Real estate stocks led the pack of laggards, along with consumer durables, capital goods and PSU stocks.
And so far in June, this influential group of investors have net sold stocks worth about $1.3 billion. Combined with the $4.3 billion net outflow from the debt segment of the market, the net outflow is now at $5.6 billion, the biggest monthly net outflow. The previous peak FII outflow figure was recorded in October 2008, soon after the collapse of Lehman Brothers, when nearly $4 billion was taken out of the country.
On Monday, as a result of a Rs 1,553-crore net outflow from the stock market, the sensex lost 233 points to close at 18,541, over a two-month low for the benchmark. The weakness of the rupee, which closed at a new record low of 59.68 to the dollar, also made investors jittery and prompted them to sell, market players said. Real estate stocks led the pack of laggards, along with consumer durables, capital goods and PSU stocks.
And so far in June, this influential group of investors have net sold stocks worth about $1.3 billion. Combined with the $4.3 billion net outflow from the debt segment of the market, the net outflow is now at $5.6 billion, the biggest monthly net outflow. The previous peak FII outflow figure was recorded in October 2008, soon after the collapse of Lehman Brothers, when nearly $4 billion was taken out of the country.
(TIMES OF INDIA)
