After five months of sustained buying, foreign investors have turned net sellers and pulled out over Rs 2,000 crore from the Indian equities in the first week of August, mainly due to Fitch downgrading the credit rating for the US.
In addition, the rich and stretched valuations and minor profit booking could be the reasons for this outflow, Yes Securities Chief Investment Advisor Nitasha Shankar said.
“A sharp spike in the US 10-year bond yield above 4 per cent is a near-term negative for capital flows to emerging markets,” Geojit Financial Services Chief Investment Strategist VK Vijayakumar said.
If the US bond yields remain high, FPIs are likely to continue selling or at least refrain from buying, he added.
According to the data with the depositories, Foreign Portfolio Investors (FPIs) withdrew a net sum of Rs 2,034 crore from Indian equities during August 1-5.
This came after unabated net inflow in the past five months — from March to July — following the resilience of the In
Posts in category Business Standard
FPIs withdraw Rs 2,000 cr in first week of Aug due to Fitch downgrading (06-08-2023)
M-cap of 7 of top-10 valued firms erode by Rs 1 trn, SBI biggest laggard (06-08-2023)
The combined market valuation of seven of the top-10 most valued firms eroded by Rs 1,09,947.86 crore last week, with State Bank of India taking the biggest hit, in-tandem with weak trend in equities.
Last week, the BSE benchmark fell by 438.95 points or 0.66 per cent.
From the top-10 pack, Reliance Industries, ICICI Bank, Hindustan Unilever, ITC, State Bank of India, Bharti Airtel and Bajaj Finance were the laggards while Tata Consultancy Services (TCS), HDFC Bank and Infosys witnessed addition in their market valuation.
The valuation of State Bank of India tumbled Rs 38,197.34 crore to Rs 5,11,603.38 crore.
Shares of State Bank of India on Friday fell by nearly 3 per cent after the company’s first quarter earnings failed to cheer investors.
The market capitalisation (mcap) of ICICI Bank eroded by Rs 17,201.84 crore to Rs 6,79,293.90 crore.
ITC’s valuation tanked Rs 16,846.18 crore to Rs 5,66,886.01 crore and that of Bajaj Finance fell by Rs 14,366.34 crore to Rs 4,32,932.18 …
Markets to focus on Q1 earnings, RBI interest rate this week: Analysts (06-08-2023)
The RBI interest rate decision, industrial production data for June and the ongoing quarterly earnings from corporates would largely drive the stock markets this week, analysts said.
Other major factors such as global market trends, the movement of oil prices and the trading activity of foreign investors would also influence trading, they added.
“The market will have an eye on the RBI Monetary Policy Committee (MPC) meeting, which will be announced on August 10, 2023. We are heading towards the last batch of Q2 earnings of key companies such as Adani Ports, Coal India, Hero MotoCorp, Hindalco and ONGC, among others, which will lead to stock-specific movement,” said Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.
On the macro front, market participants will be closely observing key events like industrial production and manufacturing production data, which will be released on August 11, Gour said.
Trend in global stock markets, movement of the dollar index, the rupee
What drives shiny metal’s price up or down, explains World Gold Council (06-08-2023)
During periods of turmoil, gold tends to make headlines as fans of the precious metal argue it can act as a safe haven. But is it also an inflation hedge? Is it considered a risk asset?
BLS E-Services files draft papers with Sebi to garner funds via IPO (05-08-2023)
BLS E-Services Ltd has filed draft papers with capital markets regulator Sebi to mobilise funds through an initial public offering (IPO).
The company is a subsidiary of BLS International Services Ltd, which offers visa and consular services.
The IPO comprises a fresh issue of 2.41 crore equity shares with no offer for sale (OFS) component, according to the draft red herring prospectus (DRHP) filed on Friday.
Proceeds of the issue will be utilized for strengthening technology infrastructure to develop new capabilities and consolidating existing platforms.
In addition, fresh capital will be used for funding initiatives for organic growth by setting up BLS Stores, achieving inorganic growth through acquisitions, and general corporate purposes.
BLS E-Services Ltd is a leading technology-enabled digital service provider, offering business correspondent services to major banks in India, assisted e-services; and e-governance services at grass root levels in India.
The company provides a
Gold price unchanged at Rs 59,950; silver price dips Rs 200 to Rs 74,800 (05-08-2023)
The price of 22-carat gold was also unchanged at Rs 54,950
Sebi reduces time limit for AIFs, VCs to invest overseas to 4 months (04-08-2023)
Capital markets regulator Sebi on Friday reduced the validity period of approval given to alternative investment funds (AIFs) and venture capital funds (VCFs) for making overseas investments to four months from six months at present.
If these funds fail to make investments within this time limit, then Sebi can allocate their unutilized limits to other applicant AIFs and VCs.
The decision has been taken considering into account the recommendation of the Alternative Investments Policy Advisory Committee, the Securities and Exchange Board of India (Sebi) said in a circular.
Under the rule, AIFs and VCFs have a time limit of six months from the date of prior approval from Sebi to making the allocated investments in offshore venture capital undertakings.
In case the applicant AIFs and VCFs does not utilize the limits allocated to them within six months then Sebi can allocate such unutilized limit to another applicant.
“It has been decided to reduce the aforesaid time limit for making
SBFC IPO subscribed 6.3x on day 2, Concord Biotech IPO over half covered (04-08-2023)
At the top end, SBFC will be valued at Rs 6,066 crore on a post-dilution basis
Sebi provides clarity on online resolution of disputes framework (04-08-2023)
Capital markets regulator Sebi on Friday provided more clarity on the framework concerning online resolution of disputes in the Indian securities market.
Providing clarity on initiation of the dispute resolution process, Sebi said that an investor will have to first take up his/her grievance with the market participant by lodging a complaint directly with the concerned market participant. If the grievance is not redressed satisfactorily, the investor can escalate the same through the regulator’s SCORES portal.
After exhausting these options for resolution of the grievance, if the investor is still not satisfied with the outcome, he/she can initiate dispute resolution through the Online Dispute Resolution (ODR) portal, Sebi said in a circular.
The regulator further said that dispute resolution through the ODR portal can be initiated when the complaint is not under consideration by the market participants and SCORES platform or not pending before any court, tribunal or consumer forum
Overseas holdings of MFs fall 13.5% in FY23, outlay at $5.6 bn in March (04-08-2023)
At the same time, the investment of foreign investors in Indian MFs increased by 1.6 per cent (in dollar terms) to $18.7 billion