Post budget FII pullout precipitates fall in the Sensex - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  
  • Home
  • Outlook Arena
  • Mar 24, 2000 - Post budget FII pullout precipitates fall in the Sensex

Post budget FII pullout precipitates fall in the Sensex

Mar 24, 2000

The BSE Sensex has actually lost over 800 points since it peaked in mid February – a loss of 13.5%. The rise then had been propelled by FII investments. The decline too it seems has been precipitated by a lack of FII interest on most trading days post budget.

In a recent interview with equitymaster.com, Ms Kristin Lindow, Vice President/Senior Credit Officer in the Sovereign Risk Unit at Moody's Investors Service, stated ‘what we did expect and did not see in the new budget was more aggressive spending restraint, a more significant withdrawal of subsidies, the actual elimination of some jobs in the public sector, and concrete proposals for spending cuts that were being hinted at months before the budget…’ (Read the interview).

The disappointment is apparent. However, from a technical point of view the sell off in the markets can in part be attributed to the decline in the NASDAQ (remember that it was the technology sector in India that was leading the rally), which corrected over 9%. This affected the domestic bourses in two ways. First, the sentiment regarding valuations of technology stocks altered during the period. And secondly, foreign institutions turned sellers to book profits in Indian markets (they had lost on the NASDAQ).

The last two months have witnessed a surge in FII inflows followed by a reversal in the trend. Net FII investments since 1st of February have now crossed Rs 34 bn. However, during February alone net investment of Rs 28 bn, which then declined to over Rs 6 bn in March. This has coincided (and in all probability contributed atleast in part) to the swing in the markets.


Equitymaster requests your view! Post a comment on "Post budget FII pullout precipitates fall in the Sensex". Click here!

  

More Views on News

Can the Nifty Fall to 10,200? (Fast Profits Daily)

Sep 24, 2020

The Nifty has reached an important support level today. If it breaks then we could see further downside.

How to Save Money by Exiting Stocks Before They Fall podcast (Views On News)

Sep 24, 2020

A penny saved is a penny earned. It doesn't matter where you enter. All that matter is where you exit. Watch this video to identify an opportune time to exit your investments and book profits.

ICICI Prudential ESG Fund: Aims for Sustainability (Outside View)

Sep 24, 2020

PersonalFN briefly explains the newly launched fund : ICICI Prudential ESG Fund.

What to Do if there is a Second Wave of the Stock Market Crash (Profit Hunter)

Sep 24, 2020

Here's what I think investors should do in this selloff.

IDFC Mutual Fund Starts Campaign 'SIFI'. Should Buy Into the Idea? (Outside View)

Sep 23, 2020

IDFC Mutual Fund is taking the road less travelled and hence started a campaign SIFI (SIP in Fixed Income) to promote the concept of SIP for its debt funds investors.

More Views on News

Most Popular

How the 8-Year Cycle Can Help Identify Multibaggers (Fast Profits Daily)

Sep 11, 2020

This is how you can apply the greed and fear cycle in the market to pick stocks.

Why We Picked This Small-cap Stock for Our Hidden Treasure Subscribers (Profit Hunter)

Sep 17, 2020

This leading household brand will profit big time in a post covid world.

This Could Be the Best September for Auto Stocks (Profit Hunter)

Sep 11, 2020

Here's why I think this month could be a great for auto stocks.

What Do the Charts Say About Buying Smallcaps Now? (Fast Profits Daily)

Sep 18, 2020

Everyone seems to be excited about buying smallcaps now...but is it the right thing to do? What do the charts tell us? Find out in this video...

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE SENSEX


Sep 24, 2020 (Close)

MARKET STATS