71.   Analysts with foreign stock brokers said the shortening of the settlement cycle would attract more foreign portfolio investments to the Indian bourses.

72.   Capital account transactions, governing direct foreign investment and portfolio investment, will still be subject to currency controls.

73.   Dealers said key index stocks such as Hindustan Lever, ITC and Ranbaxy also saw large purchases by foreign funds making portfolio investments.

74.   The bank said the fall was mainly due to lower overseas portfolio investments and lower overseas capital raisings by domestic companies.

75.   The firm also predicted that with the fall in inflation rates, interest rates would also drop, causing a slowdown in portfolio investments.

76.   The finance ministry said the drop in the outflow in portfolio investment in May was due to a large decline in investments in offshore equities.