Foreign portfolio investors (FPIs) pulled out over Rs 7,000 crore from the equity market on Monday when the Sensex crashed by 1,942 points, in the face of a price war for oil and the economic fallout from the coronavirus outbreak. Meanwhile, despite rebounding over 386 points during the day, the 30-share BSE Sensex on Wednesday pared most gains to settle 62.45 points or 0.18 percent, higher at 35,697.40.
The broader NSE Nifty closed 6.95 points, or 0.07 percent, higher at 10,458.40, as investors went for bottom fishing in recently battered counters. Yes, Bank rallied by 35.53 percent to Rs 28.80 on expectations of a quick bailout.
With heavy withdrawals on Monday, total FPI withdrawals from the equity market in March stood at Rs 19,491 crore. Total FPI withdrawals in March were at Rs 21,733 crore, including Rs 3,111 crore from the debt market.
The rupee, meanwhile, recovered by 49 paise to settle at 73.68 against the US dollar on Wednesday, amid positive domestic equities and weakening of the American dollar in the overseas market. The domestic unit had plunged to a 17-month low of 74.17 against the dollar on March 9 amid mounting fears of an economic slowdown.
After the 1,942 point crash in the Sensex on Monday, markets ended modestly higher on Wednesday, propped up by value buying in index heavyweights RIL, ICICI Bank and HDFC Bank, even as risk sentiment remained subdued amid rising coronavirus cases in India. Top gainers included Hero MotoCorp (4.08 per cent), Reliance Industries (3.60 percent), ICICI Bank (1.80 percent) and HUL (1.51 per cent). Meanwhile, Tata Steel, IndusInd Bank, ONGC, SBI, and Infosys declined.
Vinod Nair, head of research, Geojit Financial Services, said, “The global impact of coronavirus which is still spreading at a high rate in countries other than China and collapse of oil prices are having a catastrophic effect. Rate cuts and stimulus measures are not working at the time being. Even though risk concerns continue to remain elevated, inflow into domestic equity mutual fund surged to the highest level in 11 months indicating investor confidence on a long term perspective.”
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