In fact, fiscal 1999 was the first year since the FIIs were allowed into the Indian market back in early-1993 that the country experienced negative FII figures. The Pokharan II blasts in May 1998 was the main factor which influenced FIIs to withdraw from the Indian markets. In addition, the south-east Asian currency crisis and the domestic political uncertainties are believed to have added fuel to the FIIs' pessimism vis-a-vis India.

The six months immediately following the blast saw a net outflow of $611.60 million. While the two post-blast months of May and June saw outflows to the tune of $218 million and $ 198 million, respectively, during August and October 1998 the corresponding outflowfigures were $107 million and $140.60 million, respectively. The two months of July and September on the other hand saw marginal net inflows to the tune of $19.7 million and $32.2 million.

Meanwhile, during the first two days of fiscal 2000 i.e. April 1 and April 3, FIIs have brought in $16.3 million, the whole of it coming through the equity route. According to the Sebi figure, while gross purchases were at Rs 222.6 crore, gross sales were worth Rs 153.5 crore.