There is No Respite for FPIs, Sensex nosedives 560 pts(Lead)
The government Swept aside for any scope of revoking or tweaking the tax on “Super rich” which was affecting a chunk of FPIs, for the Indian Stock Market, Sensex on this Friday which slumped over Points of 560.
With the Fear of outflow of Foreign Tread funds which is a main trigger today as the Government has made it already very clear mind on the tax of the super rich which is here to stay, Khemka Siddhaart , which is the head of Retail Research , Motitlal Oswal told IANS.
The Sensex was closed 560.45 points lower at 38,337.01 while the nifty declined by 177.65 points to 11,419.25.
The FLLs will come eventually returns as Indian Market continue to be lucrative, but still pressure will be there in the near term.
Earlier a similar fear was there when India decided to stop the P-notes(Participatory Notes) , the FLLs slowed in for a short period of time which was recovered, Khemka said.
Out of 50 on the Nifty50 Stock which ended lower, A total of 43 companies was there, with the heavy selling seen in the Auto, Pharma and Banking stocks, as you can see there is No Respite for FPIs, Sensex nosedives 560 pts(Lead)
“Market slid was there as sharp sell-off by foreign funds due to Governments reluctance to tweak FPIs income tax surcharge, and the deficiency in monsoon rain, which had highly impacted the risk sentiments, said Vinod Nair, Head of Research, Geojit Financial Services.”
Nair also added that downwards revision in India Growth to 7 % by ADB and Lacklustre earnings from the domestic corporate added anxiety over the premium valuations.
Key Heavy weights are likely to announce results in the upcoming next weeks.
FPIs have pulled over rs. 5000 crore in the month of this July till date, the Highest outflow markets have been seen in 2019, in reactions to the budget tabled on July 5.
On the net basis, Foreign Institutional investors sold equities worth Rs 1,404.86 crore, while the Domestic Institutional investors purchased shares to the tune of Rs 329.05 crore, provisional data available with stock exchanges showed on Thursday.
The Shares of Yes Bank Expended losses for a Third Straight day after posting disappointing quarterly results.
The first set of Corporate results to be the failure to Impress investors. IT heavyweight Tata Consultancy Services Ltd, Which Kicked Off the Results Season last week, reported lower margins and flagged stress in the global capital markets.
Lets see whats happens next in the upcoming forth Days for No Respite for FPIs, Sensex nosedives 560 pts(Lead)
Till then, just take care of yourself and have a Nice Day ahead.
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