FIIs turn net sellers in October

After pouring in Rs 22,961 crore uninterruptedly between June and September 2005 this year, foreign institutional investors (FIIs) turned net sellers of Rs 2,721 crore in October.

This is the second highest net selling by FIIs ever since they entered the Indian markets. In May last year, FIIs sold Rs 3,250.50 crore worth of securities.

Pulled down by the sale, the Sensex has declined by 1001 points this month "" from an all-time high of 8799.96 on October 4 to Thursday's close of 7798.49. In May last year, the Sensex declined 998 points "" from 5757.30 on May 6 to 4759.62 on May 31.

According to the Securities and Exchange Board of India (Sebi), FIIs have been net sellers in 13 out of 17 trading days thus far in October.

The FIIs bought shares worth Rs 5,329 crore in June, Rs 7,934 crore in July, Rs 5,052 crore in August and Rs 4,646 crore in September.

FIIs were net sellers in April and May this year. Inclusive of this month, they have sold Rs 4,515 crore worth of shares in this calendar year.

In April, they were net sellers of Rs 654 crore, while in May the amount was Rs 1,140 crore. In the remaining seven months, they purchased net amount of Rs 39,296 crore equity shares taking their net tally in equity markets to Rs 34,780 crore. FIIs were net buyers of Rs 25,541 crore during the corresponding period of calendar 2004.

In entire 2004, FIIs had made net investment of Rs 38,966 crore in equity markets.