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Wednesday, 3 July 2013

Foreign Institutional Investors pulled out 5.6 billion Dollars from Debt Market

Foreign institutional investors (FII) in the Month June 2013 jumped out of the debt market, withdrawing 5.6 billion dollars.

The Withdrawal of this huge amount is being considered as the highest ever withdrawal in the market’s history.

Some Important Points to be highlighted

• In the first five months, FIIs had pumped in 3.9 billion dollars. The net inflow in calendar 2012 was 5.9 billion dollars.
• FIIs also pulled out 1.8 billion dollars from the equity market in June. Their net investment in equities, however, remained positive at 13.5 billion dollars.
• As of 1 July 2013, the Sensex was trading at the same level it was at on 1 January 2013. It is not the first time that India’s debt market is seeing FII money going out.
• A similar situation was seen in 2009, when foreign institutional investors pulled out 1.2 billion dollars in which the Sensex rallied 76 per cent, from around 9900 points to 17400.
• As of 28 June 2013 cumulative FII investment in India’s debt market stood at 31.7 billion dollars while the equity exposure was 139.5 billion Dollars.
• A total of 1753 FIIs are registered with market regulator SEBI for transacting in the country’s market, with the number of registered sub-accounts pegged at 6404.

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