FIIs on exit mode

On Monday, FIIs pulled out Rs 595.20 crore from Indian bourses. They had pulled out a net Rs 168 crore on May 7 after selling shares worth Rs 14.90 crore on May 6, taking the total outflow in the last three days to Rs 778 crore around 175 million. FIIs were heavy sellers on Tuesday also.

After bringing nearly 7 billion in 2003, FIIs had invested 4.33 billion in Indian market in 2004 so far. 8220;FIIs might have pulled out around 375 million since May 6 this year. This is not a big outflow. But if the trend continues for some days, the outflow could increase further,8221; said a fund manager.

FIIs have invested 27.2 billion in India ever since the Indian markets were opened up in 1993. This is considered as 8220;hot money8221; as it can be pulled out any time. US interest rates are set to rise further. US dollar is rising again. These factors may attract foreign funds to the US again.