There are fears that foreign investors are planning to leave the Indian market as stocks fell by nearly 1,000 points to a three-year low in early trading today (Friday).

The Sensex index fell below 10,400 points before making a partial recovery with the rupee down to 49 against the US dollar.

Traders are concerned that foreign investors, facing difficulties in their home markets, may be planning to consolidate operations and cut back on investments in emerging markets. In the last few days, foreign investors have sold over $875 million worth of shares, bringing the amount withdrawn so far this year to almost $5 billion.

The Reserve Bank of India is reported to be planning to make more than $12bn of credit available in an effort to boost the market. X

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