FII flows are critical for India. In May when they pulled out $2bn the market fell 3.5%. In June the market gained 4.5% as foreign funds pumped in $2bn. The global picture is rather grim with fears of growth slowdown looming large in key economies like the US, Europe and China. Also, the sovereign debt crisis in the euro-zone is yet unresolved.
The FIIs were net sellers of Rs1.6bn in the cash segment on Thursday (provisionally), according to the NSE web site. Local funds were net sellers of just Rs67mn. In the F&O segment, they were net sellers at Rs12.13bn.
