The worsening financial crisis in the US has led to a selling frenzy among foreign funds, which have invested in Indian stocks. Three major funds — Morgan Stanley, Goldman Sachs and Merrill Lynch — have already offloaded as much as Rs 170 crore in open market transactions.
Analysts believe the liquidity crunch witnessed by major global financial institutions has made them heavy sellers in stocks from emerging markets including India, as they need cash back home.
According to data available with market regulator Sebi, foreign institutional investors (FIIs) have sold off shares worth $1,998.50 million (Rs 8,061 crore) so far this month. In the past week alone, FIIs offloaded shares worth $549 million (about Rs 2,277 crore).
Morgan Stanley sold off shares worth Rs 104 crore, while Merrill Lynch and Goldman Sachs offloaded equities worth Rs 36 and 30 crore, in a host of domestic firms in bulk deals on the bourses last week.