Processing .....please wait.. 
The article has been forwarded.... 
FIIs pull out 77 percent of last year's investment
By siliconindia
|
15 Comments
Mumbai: Market crunch caused Foreign Institutional Investors (FIIs) to pull out 77 percent of the amount which they had invested in Indian market during the year 2007. Data available on the website of the Securities and Exchange Board of India shows last year FIIs had pumped the record $17.2 billion (
71,486.50) to India, where as they have already withdrawn $13.6 billion (54, 737.10 crore) so far this year, reported Financial Chronicle.
"The December results are expected to be disastrous. So the outflow could be worse in the new year," said Manish Sonthalia, Vice President, Equity strategy, Motilal Oswal Securities. Experts feel that though December is known for redemptions worldwide, foreign investors are not expected to sell heavily in the Indian market as hedge fund redemptions have already happened substantially.
"Hedge fund requests have to come one-and-a-half months prior to the end of the quarter. Thus, they have come in by November 15. Further long-only funds will be in no mood to sell at current prices," Sonthalia added.
Due to the financial turmoil, FIIs have been selling on average 4,976.10 crore every month worldwide since the beginning of this year. They likely to end up selling equities worth 59,713 crore, leaving only about 17 percent of what they has invested last year.
C J George, Managing Director, Geojit Financial Services said,"Since the market conditions look abnormal, this December is not comparable. If there are redemption pressures, there could be selling in the next month. FIIs' market behavior would be totally aligned to global market conditions."
71,486.50) to India, where as they have already withdrawn $13.6 billion (54, 737.10 crore) so far this year, reported Financial Chronicle.
"The December results are expected to be disastrous. So the outflow could be worse in the new year," said Manish Sonthalia, Vice President, Equity strategy, Motilal Oswal Securities. Experts feel that though December is known for redemptions worldwide, foreign investors are not expected to sell heavily in the Indian market as hedge fund redemptions have already happened substantially.
"Hedge fund requests have to come one-and-a-half months prior to the end of the quarter. Thus, they have come in by November 15. Further long-only funds will be in no mood to sell at current prices," Sonthalia added.
Due to the financial turmoil, FIIs have been selling on average 4,976.10 crore every month worldwide since the beginning of this year. They likely to end up selling equities worth 59,713 crore, leaving only about 17 percent of what they has invested last year.
C J George, Managing Director, Geojit Financial Services said,"Since the market conditions look abnormal, this December is not comparable. If there are redemption pressures, there could be selling in the next month. FIIs' market behavior would be totally aligned to global market conditions."