FPIs remained sellers after the budget. Shares worth Rs 8 thousand crores were sold in three days. There was a change in the attitude of foreign investors on Friday.
New Delhi. On the last trading day of the week i.e. 26th July, the stock market witnessed a boom. The BSE Sensex closed at 81,332 with a gain of 1292 points. At the same time, Nifty 50 made an all-time high of 24,861 and later closed at 24,834 with a gain of 428 points. Out of the 30 stocks of Sensex, 29 stocks were bullish while out of the 50 stocks of Nifty, 47 closed in the green. The stock market started jumping on Friday due to the rise in global markets and strong quarterly figures of most domestic companies as well as buying by foreign investors.
Foreign investors, who were net sellers since the day of the budget, suddenly changed their stance on Friday and became net buyers. According to BSE data, foreign portfolio investors made a net investment of Rs 2,546 crore in the market, while domestic funds bought shares worth Rs 2,774 crore. On Friday, out of the 30 shares of the Sensex, only one, Nestle share, closed in the red. The gain-loss ratio in the border market was much more balanced. On the BSE, 2,595 shares closed with a gain, while 1,354 shares closed in the red.
Foreign investors disappointed with the budget
Finance Minister Nirmala Sitharaman announced an increase in tax on profits from derivative trades and equity investments in the government’s annual budget. After this announcement on the 23rd, foreign investors became sellers and by July 25, they sold shares worth one billion dollars (about Rs 8,106 crore). According to a Reuters report, foreign investors had invested $2.20 billion in Indian shares in just 6 days before the budget announcement.
Strong economy became a support
According to a Times of India report, Prashant Tapase, Senior VP (Research) of Mehta Equities, says that despite being in the negative zone for five consecutive trading sessions, the Indian stock market performed better than its global competitors. The sharp rise in the Indian market on Friday shows that India is a good market for investors for the long term. Despite global uncertainty and geopolitical tensions, the Indian economy is showing strength. The quarterly results of most blue chips and mid-cap companies have also been better.
Tags: BSE Sensex, Business news, Stock market
FIRST PUBLISHED : July 27, 2024, 13:15 IST