BSE Sensex on Monday closed nearly 34 points higher at 26,350.17 with gains in realty, power, FMCG and oil & gas stocks amid sustained buying by domestic institutional investors.
Trading sentiment remained distinctly weak due to the cash crunch arising out of the government's move to demonetise Rs 500 and Rs 1,000 notes to flush out black money amid concerns about its impact on small and medium-sized businesses which largely run on cash.
After turning net buyers for the fifth straight month till June, foreign portfolio investors (FPIs) withdrew a net of Rs 11,743 crore ($1.7 billion) in July. This was their highest outflow since October 2018.
There is polarisation among sectors with IT and healthcare receiving the lion's share of FPI money in the past two quarters.
'Money that came into mutual funds near the previous peaks -- the second half of 2017 and 2018 -- has in most cases experienced unflattering returns.' 'A large proportion of redemptions could be such inflows exiting when the market recovered sharply from July 2020 onwards.'
NSE Nifty, after shuttling between 10,809.60 and 10,725.90, finished 30.95 points, or 0.29 per cent lower at 10,741.10.
It is thought that the RBI has been accumulating dollars to fight odds.
Foreign portfolio investors, on the other hand, have been net sellers in the markethaving pulled out Rs 8,600 crore
A referendum will be held on Thursday, June 23, to decide whether Britain should exit (Britain's exit, hence the term Brexit) or remain in the European Union.
The US currency's decline against major world currencies alongside fag-end dollar supply largely helped the rupee recoup some of its initial losses
The global brokerage firm believes that CRR cut is likely to help cut lending rates and revive growth sentiments.
Rating agency expects current account deficit to remain at a modest 1.4% at end of FY16 and stay at similar level till 2018
While a coordinated aggressive monetary easing from the central banks is most likely to offer some respite in the near-term, it is unlikely to improve the sentiments.
Indian capital markets joined the global sell-off sparked by China growth concerns
'If the third wave of Covid infections is as bad as the second one, the market may get very polarised with a preference for blue-chips with low volatility.'
Foreign exchange reserves jumped $1.17 billion to touch a new record high of $355.46 billion.
In the longest losing streak of 2017, the BSE Sensex has lost 1,270 points, or 3.91 per cent. It fell to a three-month low of 31,154.03 on Wednesday.
India's current account deficit is expected to deteriorate in the current fiscal on account of costlier imports and tepid merchandise exports, according to the Finance Ministry's monthly economic review. The review released on Thursday by the ministry also said that global headwinds would continue to pose a downside risk to growth as crude oil and edibles, which have driven inflation in India, remain major imported components in the consumption basket. For the present, it said, "their global prices have softened, as fears of recession have dampened prices somewhat. This would weaken inflationary pressures in India and rein in inflation."
On Wednesday, FIIs sold shares worth Rs 1,573 crore.
Import duty on PVC, at 7.5%, is far lower than that prevailing in comparable economies.
The V-shaped rebound has been aided by a gush of liquidity flooding the global financial system, thanks to balance sheet expansion.
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The rupee on Friday touched an all-time low of 62.03 to a dollar, spooking the equities market and dragging the Sensex down to 18,621.39 in the afternoon.
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Policymakers stepped in late Thursday to calm markets.
The three hour long meeting was attended by Secretaries of departments of Revenue, Expenditure, Financial services and Disinvestment.
Benchmark stock indices Sensex and Nifty tumbled nearly 1 per cent on Wednesday due to profit booking in banking, financial and IT stocks after a recent rally. The 30-share BSE Sensex plunged 537.22 points or 0.94 per cent to end at 56,819.39 as 24 of its stocks declined. During the day, it tanked 772.57 points or 1.34 per cent to touch a low of 56,584.04. The broader NSE Nifty declined by 162.40 points or 0.94 per cent to 17,038.40 with 39 of its constituents ending in the red. Bajaj Finance was the biggest loser among Sensex stocks, dropping by 7.24 per cent.
The Reserve Bank of India on Thursday raised the overall limit for overseas investment by domestic mutual funds from $5 billion to $7 billion. Industry estimates peg the amount invested overseas at $1 bn to $2 billion. Only last September, RBI had raised the overseas investment limit for mutual funds from $4 bn to $5 bn. RBI said the overall ceiling for investment in overseas exchange-traded funds will continue to be at $1 bn. There are about 17 schemes that invest overseas.
Investors accumulated quality stocks at valuable and attractive levels.
Participatory Notes (P-Notes) are derivative instruments issued by FIIs to foreign investors -- individuals or corporates -- who want exposure to Indian equities, but do not want to register with Sebi.
The broader NSE Nifty closed 1.25 points, or 0.01 per cent down at 10,564.05.
Strong MF investments, stemming of FII outflows and positive earnings in Q3 have helped market, say analysts.
'Indian macro conditions have never been better, and many businesses will safely compound earnings over the next five years.'
While three of the top five FPIs - Capital, Government of Singapore, and Vanguard - have seen their investment value more than triple, India's benchmark indices have risen just 70%.
Flow surge in equity schemes is an important reason why Indian stock market did not crash.
The deficit increased to $ 57.2 billion or 2.1 per cent of gross domestic product (GDP) in 2018-19 as against 1.8 per cent in the previous year.
'There will be massive differences in sectors and stocks over the next few years.'
The branch managers have come out of their glass cabins and the sellers' market has transformed into a buyers' market, but there is no end to the harassment of customers, asserts Tamal Bandyopadhyay.
'Life will not improve overnight; it will happen in a gradual manner.'
Higher interest rates in the US do not necessarily coincide with capital outflows.
In the entire 2017, FPIs put in a collective amount of Rs 2 trillion in equity and debt markets
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