Answer : Option E

Explanation :

The statement does not indicate whether the FIIs pulled out after expiry of the lock-in period of there is no lock in period at all. Hence (A) is out of context.

It is stated that the man reason for pullout of funds is the European crisis. From this it can be concluded that this money is going to be used in Europe. Hence (B) is a conclusion.

It is stated that the pullout is affecting the Indian stock market. From this it may be understood that some of the FII money that is pulled out was earlier invested in the Indian stock market. But can't say definitely. Hence (C) is an not inference.

When the stock market is adversely affected it is likely that the existing investers may also try to come out to avoid losses due to the melt down. Hence (D) is a possible effect of the consequences.

The FIIs are pulling out money from India in the wake of the European crisis i.e they are taking out money from our place because there is a crisis at some other place. From this it can be understood that they need money to face the crisis and in that situation they are unable to keep invested in the Indian stock market.

None of the given statements is an assumption.