Foreign funds have net sold Indian stocks in the cash market worth Rs 2420 crores in three days. Domestic institutions on the other hand were seeing buying shares with Friday's purchases by domestic institutions totalling more then Rs 910 crores.
Analysts say that foreign funds are worried over the sharp depreciation in the rupee, which this week hit Rs 58.96 to the dollar. They fear that sustained weakness in the currency would see foreign funds pressing more sales next week.
Foreign funds are also gradually pulling out of the debt market as the returns between the US and the Indian debt markets reduce. Foreign funds have so far in June sold debt instruments worth Rs 18,578.6 crore so far.
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