Rexit Impact: foreign funds take out Rs. 2,837 crore

The Dollar Business Bureau

In line with the industry’s earlier prediction following RBI Governor Raghuram Rajan’s surprise announcement of resignation bringing an end to his three-year term on September 4, foreign investors on Monday took out over Rs.3,700 crore from the Indian market, the highest single-day outflow so far during this financial year.  

On the first trading session on Monday, foreign portfolio investors (FPIs) remained the major net sellers as they sold to the tune of Rs 2,837 crore in Indian markets on Monday's trade. 

Life Insurance Corp. pumped in Rs.99 crore to buy shares of 6-7 bluechip firms. Its mutual funds also attracted heavy buyers with a net purchase of Rs. 459 crore worth-shares and debt securities worth Rs.1,215 crore during the day. 

Some hectic buying by domestic institutions and by some top-shot brokers in their proprietary accounts was in contrast to heavy selling of stocks by FPIs, NRIs and the retail investors.

 According to the depository data released on Tuesday, FPI’s net outflow in equities was at Rs.528 crore, while they were net sellers for up to Rs. 2,310 crore in the debt market.

The data released on Tuesday indicated that mutual funds purchased shares worth Rs.1,462 crore and sold Rs.1,003 crore on Monday. It resulted in a net purchase worth Rs.459 crore. There were net buyers of shares worth Rs 1,215 crore for debt market.

The stock exchange data for Monday showed that retail investors were the net sellers to the tune of about Rs 125 crore. The NRIs, who are otherwise not very active in the Indian markets, also sold shares for Rs.4.35 crore. The brokerage firms in their proprietary accounts, too, were the net buyers for Rs.25 crore, higher than their daily average amount.