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MONTH ENDED | NET INV.(Rs m) | MONTH END(Rs / US$) | NET INV.(US$ m) | MONTH END INDEX |
CURRENT VALUE(Rs m) | CUMM. INV.(Rs m) | CUMM. VALUE(Rs m) | % GAIN(Rs m) | % GAIN(US$ m) |
---|---|---|---|---|---|---|---|---|---|
Jan - 1998 | 7,396 | 36.21 | 204 | 3,224 | 176,999 | 7,396 | 176,999 | 2,293 | 926 |
Feb - 1998 | 4,536 | 38.83 | 117 | 3,622 | 96,626 | 11,932 | 273,625 | 2,193 | 909 |
Mar - 1998 | (335) | 39.49 | (8) | 3,893 | (6,639) | 11,597 | 266,985 | 2,202 | 911 |
Apr - 1998 | (5,031) | 39.63 | (127) | 4,007 | (96,873) | 6,566 | 170,112 | 2,491 | 985 |
May - 1998 | (8,662) | 40.00 | (217) | 3,686 | (181,314) | (2,096) | (11,202) | 434 | 329 |
Jun - 1998 | 944 | 42.00 | 22 | 3,251 | 22,404 | (1,152) | 11,202 | (1,072) | (1,672) |
Jul - 1998 | (3,851) | 42.49 | (91) | 3,211 | (92,534) | (5,003) | (81,332) | 1,526 | 872 |
Aug - 1998 | 1,923 | 42.75 | 45 | 2,934 | 50,569 | (3,080) | (30,763) | 899 | 573 |
Sep - 1998 | (5,095) | 42.54 | (120) | 3,102 | (126,728) | (8,175) | (157,490) | 1,826 | 972 |
Oct - 1998 | 546 | 42.30 | 13 | 2,812 | 14,981 | (7,629) | (142,509) | 1,768 | 948 |
Nov - 1998 | 3,323 | 42.72 | 78 | 2,811 | 91,209 | (4,306) | (51,300) | 1,091 | 630 |
Dec - 1998 | 4,529 | 42.67 | 106 | 3,055 | 114,383 | 223 | 63,082 | 28,188 | 3,149 |
It was a year of mixed fortunes for both the Sensex and FII investment in 1998. Unit Trust of India decided to reduce its equity exposure in its flagship scheme US-64 and the Vajpayee led government executed the Pokhran nuclear tests. FIIs turned big sellers with net investments in 1998 totaling just Rs 0.5 bn (lowest in the last eight years). The Sensex also touched a 2,784 in October 1998, the lowest in the past 5 years. The fall was the result of political uncertainty and the testing of nuclear devices by India that resulted in several countries imposing bans on lending to projects in India. Despite these developments, the much-needed trigger came in the latter half of the year as the Sensex was revamped through inclusion of software companies. Net investment by FIIs grew by 504% to Rs 3 bn in December 1998 compared to the previous month. During the same period the Sensex moved up sharply by 17.5%. The economic recession, which started in the beginning of the year, slowed down the GDP growth to 5%, lowest in the last six years.