First time since 1999, FIIs turn net sellers April 20, 2009
Posted by dhirendra1972 in Declining Millions, Disposal of Shares, Recovery of Equity, Stood Sharply.Tags: Broking House Bonanza, Cash Crunch, Data, Financial Services, Foreign institutional investors (FIIs), Funds, Global Markets, Global Resources, Indian Equity Market, Indian Markets, Liquidity Pressure, Net Investment, Net Sellers, Parent Entities, Profitable Venture, Securities and Exchange Board of India (SEBI), Shares
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Good morning friends. FII turn net sellers. This is the first time happened since 1999.
Foreign institutional investors (FIIs) disposed of shares worth $11.83 billion last fiscal, turning net sellers for the first time since 1998-99, data with the Securities and Exchange Board of India (SEBI) shows.
As on March 31, 2008, these funds had pumped in $68,007 million into the Indian equities market, but a year later, their net investment stood sharply eroded at $51,669 million – a decline of $11,826 million.
“In 2008, it was more due to liquidity pressure back home than anything else that FIIs sold out. This was the case throughout the global markets and not just Indian markets,” said Shiv Kumar Goel, promoter-director of financial services and broking house Bonanza.
“They sold out even from profitable ventures. These funds tried to consolidate resources globally to ease the cash crunch of parent entities,” added Goel.
SEBI data further shows that save for April, December and March, the months during which Indian equities staged some recovery, FIIs were net sellers in each of the remaining months. –The Economic Times
