FPIs Ship-Out, As Negative Global Cues Set In


The FPIs had sold stocks worth 2,487.02 crore for the week ended Sep 26 and had only bought shares worth $75.40 million or 458.34 crore.

The week ended Sep 19 saw the FPIs buying shares worth $354.24 million or 2,159.67, which helped propel the Indian equities market to subsequent new highs.

Negative international cues were cited as a major cause for FPIs pulling back. saw selling pressure gaining momentum after US and European markets came under stress which partly reflected the lingering concerns about global economic growth and monetary policy divergence.

European markets were tempered by scepticism about the European Central Bank's promise of further measures to bolster the region's sluggish economy, even as Germany headed for recession.

Last week economic data showed that Germany industrial output figures had fallen to its lowest ever mark in the last five and a half years.

Back home, Indian markets tracking global cues fell. Companies seen most exposed to the global economy such as Hindalco Industries and Sesa Sterlite declined tracking downturn in global markets.

Dogged by the weak FPI sentiment, saw the benchmark Sensex losing 0.71 percent in the weekly trade ended Oct 17 from its previous close on Oct 10. The index closed at 26,108.53 points, while it had ended trade at 26,297.38 points on Oct 10.

The index had lost 1.01 percent in the week ended Oct 10 from its previous close on Oct 1. The index that time had closed at 26,297.38 points, while it had ended trade at 26,567.99 points on Oct 1.

Source: IANS