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![The Indian prime minister last week outlawed 500 and 1,000 rupee notes [Xinhua]](http://thebricspost.com/wp-content/uploads/2016/11/260407382_81.jpg)
The Indian prime minister last week outlawed 500 and 1,000 rupee notes [Xinhua]
A Business Standard report cited stock exchange data that revealed the total net outflow of foreign institutional investors reached $ 1.25 billion in the past five trading sessions.
“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 report added.
India is the world’s fastest-growing major economy.
Thursday marks nine days of millions of Indians queuing up outside banks and post offices to exchange old banknotes or withdraw rationed money from their accounts. There are no signs of the queues getting shorter according to local media reports.
The government also slashed the amount of old money people can exchange for new notes to 2,000 rupees – or just under $30 – from a limit of 4,500 rupees.
The government is visibly struggling to print enough notes to replace its withdrawal of 86 per cent of the currency in circulation.
A senior government official, the Economic Affairs Secretary Shaktikanta Das, said on Thursday that the government will allow farmers to withdraw up to 25,000 rupees ($368) a week against their crop loans to ensure that sowing of winter crops “takes place properly”.
The prime minister last week outlawed larger denomination notes in what he called a drive to rein in corruption and a shadow economy.
TBP and Agencies
