Tapering effect: FIIs withdraw Rs 2,000 cr from equities in Feb so far
17 Feb 2014 1:33 AM GMT
Thus, as feared earlier by the market experts, foreign institutional investors (FIIs) also turned net sellers of equities this year. After buying $20 billion (over Rs 1.23 lakh crore) worth of stocks in 2013, they have sold equities totalling Rs 1,298 crore since January.
FIIs were gross buyers of equities worth Rs 25,573 crore and sellers of stocks to the tune of Rs 27,586 crore till 14 February, resulting in net outflow of Rs 2,012 crore ($322 million), according to the data of market regulator Sebi.
Market experts attributed the sell-off by FIIs to global events like further scaling down of the economic stimulus programme for the American economy by the US Federal Reserve.
Starting January, the US Fed cut bond purchases to $75 billion from $85 billion. Earlier this month, it decided to cut it by another $10 billion.
Experts also said that the market would not witness strong inflows till the general elections, scheduled for May, are completed in India and the further pumping in of money by FIIs would depend on the formation of the new government.
However, overseas investors have pumped in Rs 7,372 crore in the debt market this month so far. With the latest pull-out, FIIs investment in bonds stood at Rs 801 crore since the beginning of 2014.
In 2013, overseas investors infused a net amount of Rs 1.13 lakh crore ($20.10 billion) in equities, while they pulled out a net of Rs 50,847 crore ($8 billion) from the bond market.
As of 14 February, the number of registered FIIs in the country stood at 1,727 and the total number of sub-accounts was at 6,380.
RBI remains net buyer of dollars in Dec by purchasing over $5 bn
Mumbai: The Reserve Bank of India (RBI) became net purchaser of dollars for the third month in a row in December, 2013, when it bought $5.057 billion and sold $1.574 billion in markets.
According to the RBI data, the apex bank bought $17.787 billion, in November, the highest so far this fiscal, and sold $7.7 billion, thereby becoming a net buyer of $10.087 billion.
The RBI became the net buyer of dollars billion in October after a gap of five months. It had bought $9.510 billion and sold $5.58 billion in the month.
In the current fiscal, the central bank had first became net purchaser of dollars in April, buying $518 million from markets. In April, the RBI had bought $3.29 billion and sold $2.78 billion.
Between May and September, the RBI was a net seller of the US currency on a monthly basis to shore up the rupee which tumbled after the US Fed hinted at withdrawing its easy money policy towards the end of May.
The rupee depreciated nearly 30 per cent between May and August. It touched a life-time low of Rs 68.85 during intra-day trades on 28 August. In September, the RBI sold $3.55 billion on net basis, as per the RBI data.
In July, the RBI net sold $5.98 billion. It bought mere $50 million from the market, while sold $6.03
billion in the month.
7 blue-chips add Rs 25,098 cr in market-cap
Mumbai: The combined market valuation of 7 blue-chip Sensex companies surged Rs 25,098 crore last week with Tata Motors, the new entrant in the top-10 list, emerging as the biggest gainer.
Barring Coal India, ITC and HDFC Bank, rest of the seven firms including TCS, RIL, ONGC and Infosys saw addition in their market-capitalisation (m-cap) for the week ended 14 February.
Tata Motors' m-cap climbed Rs 5,814 crore, to Rs 1,04,571 crore. ONGC's market value soared Rs 5,604 crore to reach Rs 2,35,960 crore and TCS added Rs 4,486 crore to touch
 Rs 4,24,309 crore.
FIIs were gross buyers of equities worth Rs 25,573 crore and sellers of stocks to the tune of Rs 27,586 crore till 14 February, resulting in net outflow of Rs 2,012 crore ($322 million), according to the data of market regulator Sebi.
Market experts attributed the sell-off by FIIs to global events like further scaling down of the economic stimulus programme for the American economy by the US Federal Reserve.
Starting January, the US Fed cut bond purchases to $75 billion from $85 billion. Earlier this month, it decided to cut it by another $10 billion.
Experts also said that the market would not witness strong inflows till the general elections, scheduled for May, are completed in India and the further pumping in of money by FIIs would depend on the formation of the new government.
However, overseas investors have pumped in Rs 7,372 crore in the debt market this month so far. With the latest pull-out, FIIs investment in bonds stood at Rs 801 crore since the beginning of 2014.
In 2013, overseas investors infused a net amount of Rs 1.13 lakh crore ($20.10 billion) in equities, while they pulled out a net of Rs 50,847 crore ($8 billion) from the bond market.
As of 14 February, the number of registered FIIs in the country stood at 1,727 and the total number of sub-accounts was at 6,380.
RBI remains net buyer of dollars in Dec by purchasing over $5 bn
Mumbai: The Reserve Bank of India (RBI) became net purchaser of dollars for the third month in a row in December, 2013, when it bought $5.057 billion and sold $1.574 billion in markets.
According to the RBI data, the apex bank bought $17.787 billion, in November, the highest so far this fiscal, and sold $7.7 billion, thereby becoming a net buyer of $10.087 billion.
The RBI became the net buyer of dollars billion in October after a gap of five months. It had bought $9.510 billion and sold $5.58 billion in the month.
In the current fiscal, the central bank had first became net purchaser of dollars in April, buying $518 million from markets. In April, the RBI had bought $3.29 billion and sold $2.78 billion.
Between May and September, the RBI was a net seller of the US currency on a monthly basis to shore up the rupee which tumbled after the US Fed hinted at withdrawing its easy money policy towards the end of May.
The rupee depreciated nearly 30 per cent between May and August. It touched a life-time low of Rs 68.85 during intra-day trades on 28 August. In September, the RBI sold $3.55 billion on net basis, as per the RBI data.
In July, the RBI net sold $5.98 billion. It bought mere $50 million from the market, while sold $6.03
billion in the month.
7 blue-chips add Rs 25,098 cr in market-cap
Mumbai: The combined market valuation of 7 blue-chip Sensex companies surged Rs 25,098 crore last week with Tata Motors, the new entrant in the top-10 list, emerging as the biggest gainer.
Barring Coal India, ITC and HDFC Bank, rest of the seven firms including TCS, RIL, ONGC and Infosys saw addition in their market-capitalisation (m-cap) for the week ended 14 February.
Tata Motors' m-cap climbed Rs 5,814 crore, to Rs 1,04,571 crore. ONGC's market value soared Rs 5,604 crore to reach Rs 2,35,960 crore and TCS added Rs 4,486 crore to touch
 Rs 4,24,309 crore.
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