Who says FIIs triggered Sensex crash?

Who says FIIs triggered Sensex crash?
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First Published: Mon, Mar 12 2007. 03 00 PM IST
Updated: Mon, Mar 12 2007. 03 00 PM IST
By PTI
New Delhi: Foreign investors faced flak for pulling down the domestic stock market deep into the red over the past one month. However, a little bit of data crunching shows that Foreign Institutional Investors are not guilty as charged.
The barometer index lost 164 points on Friday to settle at 12,884.99 points, representing a steep fall from its peak of 14,724 scaled exactly one month ago on 9 February.
However, an analysis of FII activity over this period shows that FIIs have made an average daily net purchase of shares worth $35 million since the downfall began last month.
In contrast, the average daily net inflow from FIIs was lower at $30 million during the close to four-month upward journey of Sensex, which gained those 1,839 points it lost in the current dowslide.
Before the current downtrend began, the Sensex was last trading close to its current levels on 17 October, when it had settled at 12,883 points.
FIIs had made net purchase of close to three billion dollars (Rs 13,400 crore) between 17 October and 9 February, while they have been net buyers of about 700 million dollars (Rs 3,100 crore) during the past one month.
According to the market experts, it has been the sentiments, rather than the actual numbers, that hit the bourses and stripped off an estimated eight billion dollars (Rs 36,000 crore) from the total investor wealth put into domestic bourses in just a month.
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First Published: Mon, Mar 12 2007. 03 00 PM IST
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