FIIs pull out Rs3,200 crore from Indian securities market in Nov

Market analysts believe the heavy selling by foreign institutional investors (FIIs) was triggered by the debt crisis in the Eurozone. Weakening of the rupee also contributed to the sell-off

Mumbai: Foreign funds withdrew over Rs3,200 crore from the Indian securities market in the month of November amid concerns over the worsening debt crisis in the Eurozone, reports PTI.

According to the data available with market regulator Securities and Exchange Board of India (SEBI), overseas investors purchased stocks and debt securities worth Rs62,296.10 crore and sold securities valued at Rs65,559.20 crore during the month. This translated into a net outflow of Rs3,263.20 crore.

Market analysts believe the heavy selling by foreign institutional investors (FIIs) was triggered by the debt crisis in the Eurozone. Weakening of the rupee also contributed to the sell-off.

“Eurozone worries have pushed the Indian market into risk aversion mode and other emerging countries are performing better than India, so FIIs are staying from our market,” Destimoney Securities managing director and CEO Sudip Bandyopadhyay said.

He further said, “We witnessed a similar situation in August and September, now we are seeing a repeat of those conditions.”

In November, FIIs withdrew Rs4,198 crore from the equity market and pumped Rs935 crore into the debt market.

With this, total FII withdrawals from the equity market in 2011 so far amount to Rs2,812.10 crore, while their investment in debt has reached Rs14,112.30 crore.

Overall, FIIs have pumped Rs17,480.50 crore into the stock and bond market so far this year, compared to about Rs1,79,674 crore in the whole of 2010.

Mirroring the volatility in the global economy, FIIs were not very consistent while investing in Indian securities. Last month, they invested a hefty sum of Rs3,079 crore, while they withdrew Rs ,866 crore in September.

In August, foreign funds pulled out nearly Rs8,000 crore, or $1.8 billion, from the Indian stock and debt markets—their highest monthly withdrawal since October 2008.

The continuous withdrawal of funds by foreign investors is one of the major factors for the sustained decline of the stock market in recent weeks. The BSE benchmark Sensex plunged by 1,581.55 points, or 9%, last month to close at 16,123.46 on Wednesday.

The number of FIIs registered with SEBI stood at 1,743 as of November this year, while the number of sub-FIIs was 6,187.

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Govt to sell entire stake in 3 sick PSUs

While the government holds the entire stake in Tyre Corporation of India and Central Inland Water Transport Corporation, it has a 95.38% holding in Scooters India

New Delhi: The government on Thursday said it has approved to sell its entire stake in three sick PSUs—Scooters India, Tyre Corporation of India and Central Inland Water Transport Corporation to strategic investors, reports PTI.

“The government has approved sale of entire shareholding to a strategic partner in Central Inland Water Transport Corporation, Scooters India and Tyre Corporation of India,” minister of heavy industries and public enterprises Praful Patel told the Lok Sabha in a written reply.

The government owns 100% equity in Central Inland Water Transport Corporation which is engaged in the transportation by inland waterways.

West Bengal-based Tyre Corporation, engaged in manufacturing and marketing of automotive tyres, is also wholly-owned by the government.

In Scooters India, the government holds 95.38% stake.

Further, Mr Patel said strategic sale in loss-making Central Public Sector Enterprises (CPSEs) is taken up on a case-to-case basis, when efforts for their revival fail.

The Board for Reconstruction of Public Sector Enterprises (BRPSE) advises the government on the revival and restructuring of sick state-owned companies.

The concerned ministries/departments prepare proposals for revival of loss-making companies and refer them to BRPSE for recommendations.

During 2009-10, 59 sick PSUs registered losses worth Rs15,842 crore, Mr Patel said.

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2G case: Raja’s private secretary Chandolia gets bail

With grant of bail to A Raja’s erstwhile private secretary RK Chandolia, only Mr Raja and former telecom secretary Siddharth Behura have been left in jail. All 12 other accused, arrested in the case, have now secured bail

New Delhi: Former telecom minister A Raja’s erstwhile private secretary RK Chandolia, arrested for his alleged role in the second generation (2G) spectrum case, was on Thursday granted bail by a Delhi court, reports PTI.

“The bail application is allowed,” special CBI judge OP Saini said, accepting Mr Chandolia’s bail plea.

With grant of bail to Mr Chandolia, only Mr Raja and former telecom secretary Siddharth Behura have been left in jail. All 12 other accused, arrested in the case, have now secured bail.

Mr Chandolia, who has been in jail since his arrest on 2nd February, this year, was granted the relief on furnishing a personal bond of Rs3 lakh with two sureties of the like amount.

The court had on Wednesday reserved its order on Mr Chandolia’s bail plea after hearing counsel for the accused and the CBI.

The CBI had opposed Mr Chandolia’s bail plea saying he, Mr Raja and Mr Behura were public servants and formed the ‘core sector’ of conspiracy and stood on a ‘different footing’ from those granted bail in the case.

“The core sector of conspiracy comprises these three gentlemen (Mr Raja, Mr Behura and Mr Chandolia) and they fall in the same category which is different from others who are granted bail,” special public prosecutor UU Lalit had said.

“These three gentlemen are on a different footing... It will be unrealistic to draw parity with those released on bail,” he had said.

Vijay Aggarwal, counsel appearing for Mr Chandolia, however, had contended that even the apex court has “not dissected the case and granted bail not to the individual accused but in the 2G case”.

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