FIIs pulled out $1 billion in five trading sessions

S&P BSE Sensex and NSE Nifty50 index down by 4.7% and 5%, respectively during the same period.

Foreign Institutional Investors (FIIs) and foreign portfolio investors (FPIs) have sold equity shares worth over $1 billion in the past five trading days after the government last week demonetised Rs 500 and Rs 1000 currency notes.

As per data from the National Securities Depository Ltd (NSDL), since November 9, FIIs and FPIs have been net sellers at $ 958 million (Rs 6,432 crore) till Tuesday.

As per provisional stock exchange data, FIIs sold an additional shares worth of Rs 1,957 crore on Wednesday, taking their total net outflow of Rs 8,389 crore ($ 1.25 billion) in the past five trading sessions.

Date	FIIs net outflow
09/11/2016	-2,095
10/11/2016	-733
11/11/2016	-1,493
15/11/2016	-2,354
16/11/2016	-1,957
Total	-8,632
Net outflow in Rs crore
Source: NSDL, BSE

The huge selling by overseas investors has dragged the benchmark S&P BSE Sensex and Nifty50 stock indices down by 4.7% and 5%, respectively during the same period.

An analysis of 156 companies from the BSE200 index, in which FIIs held more than 10% stake in the recent quarter, 103 stocks declined more than 5% each.

The total market capitalisation of 200 companies declined Rs 482,512 crore to Rs 8,474,833 crore on Wednesday. These 200 firms accounted 81% of total market capitalization of BSE listed companies.

The consumption related sectors include real estate, non-banking finance companies (NBFCs) and microfinance institutions (MFIs) hit the most on concerns of demand slowdown in the near term.

Of these 103, five stocks – Shriram City Union Finance, Dewan Housing Finance (DHFL), Century Textiles, DLF and Housing Development & Infrastructure (HDIL) - have seen their market value fallen by more than 20% each.

“Real estate demand has been lacklustre over the last 3-4 years due to several factors. Demonetisation is expected to further dampen demand and negatively impact prices in the sector, in part supported by the presence of the parallel economy,” according to analysts at Credit Analysis & Research.

In the long term, the demonetization along with implementation of Real Estate Regulation Act and single-window clearance system will be positive for the sector leading to higher transparency and investors’ confidence, added report.

Name	08/11/2016	16/11/2016	% chg
Dewan Housing	313.75	230.75	-26.45
DLF	143.65	108.60	-24.40
HDIL	74.45	58.10	-21.96
Shriram City	2422.15	1891.45	-21.91
Century Textiles	976.65	771.15	-21.04
Berger Paints	246.00	198.65	-19.25
Shriram Trans	1054.85	854.55	-18.99
L&T Fin.Holdings	103.75	84.30	-18.75
Page Industries	15945.35	12973.60	-18.64
M & M Fin. Serv.	345.90	281.85	-18.52