FIIs pull out Rs 2,000 cr from securities mkt in Sept

Mumbai: Foreign funds pulled out nearly Rs 2,000 crore from the Indian stock and debt market in September, the second consecutive month in which overseas capital outflows were greater than inflows.

According to data available with the Securities and exchange Board of India (Sebi), overseas investors purchased equity and debt securities worth a gross amount of Rs 64,868crore in September.

At the same time, Foreign Institutional Investors (FIIs)sold securities worth Rs 66,734 crore during the month. Thistranslated into a net outflow of Rs 1,866 crore during theperiod.

[caption id=“attachment_97763” align=“alignleft” width=“380” caption=“Foreign Institutional Investors (FIIs)sold securities worth Rs 66,734 crore during the month. Thistranslated into a net outflow of Rs 1,866 crore during theperiod. Flickr/CreativeCommons”]  [/caption]

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This was the second consecutive month in which there wasa net outflow of FII money from the country. Last month,foreign funds pulled out nearly Rs 8,000 crore, or $1.8billion, from the Indian stock and debt market - the highest

monthly withdrawal since October, 2008.

In October, 2008, foreign fund houses were net sellers ofequities and debt worth Rs 13,489 crore.Market analysts believe the heavy selling by FIIs was

triggered by ongoing debt crisis in the euro zone and weakness

in the US economy.

The heavy selling by FIIs was the main reason for the BSEbenchmark Sensex losing 368 points, or 2 percent, inSeptember.FIIs withdrew money from both the equity and debt market.They pulled out more capital from the debt market thanequities during the period under review.

Foreign fund houses pulle out Rs 158 crore from thestock market and Rs 1,707 crore from the debt market duringSeptember, 2011, Sebi said.

So far this year, FIIs have pumped Rs 17,664.60 croreinto the stock and bond markets, compared to about Rs 1,79,674crore in the whole of 2010.The number of FIIs registered with Sebi stood at 1,745 asof September this year.

PTI