New Delhi: The government has said foreign investors’ views for India is not wholly negative as the gross flows to the country continue to be large.
“While FII flows remained negative on a net basis, gross flows on both sides continue to be large indicating that investor views on India are not one-sided,” said the Mid-Year Review of the Economy for 2008-09, tabled in Parliament.
The report said that the meltdown and volatility in the stock market was largely attributable to huge outflows by foreign institutional investors and the related slump in investor sentiments.
“While fall in indices of Indian securities market is in line with the fall in the major indices, world over, a large part of the above movement is attributable to FII outflows and associated to dip in domestic sentiments,” it added.
Pointing out the volatile movement of the Sensex since January, the report stated that the securities market exhibited large volatility around a strong declining trend; mainly through overall FII outflows.
The bellwether BSE Sensex reached a peak of 20,873 points on 8 January, 2008, and subsequently declined to a low of 12,575 points on 16 July and after recovering to 14,678 points on 20 August, it declined again on global cues and settled at 12,595 points on 29 September.
The index has been ruling well below the 10,000 mark since October, it added.
According to the latest Sebi data, FIIs have pulled out over $13 billion (Rs52,452 crore) from equities in the domestic market so far this year.
However, the gross purchases have been Rs7,17,796 crore and gross sales were to the tune of Rs7,70,248 crore so far this year.