FIIs sell $260m in equities on bleak global economic conditions

`MUMBAI, Dec 18 (IANS): With Indian equities markets in a firm bearish grip because of slowing domestic growth and bleak global economic conditions, foreign funds pulled out over $260 million during the week ended December 16. The effect of the sell-off was evident on the markets. The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) fell 4.45 per cent or 722.11 points in the week ending Friday at 15,491.35 points -- the lowest in 25 months. At the National Stock Exchange, the 50-scrip S&P CNX Nifty also tumbled to a two year-low and closed the week with a 4.42-per cent or 215.1 points loss at 4,651.6 points. Foreign institutional investors (FIIs) have been far from optimistic about Indian stocks as the economy started showing signs of slowdown and interest rates shot up after 13 successive rate hikes by the Reserve Bank of India (RBI) since early 2010. The gross domestic product grew by the slowest in nine quarters at 6.9 per cent in the July-September period. Industrial output fell into the negative, recorded at (-) 5.1 per cent in October.