INSUBCONTINENT EXCLUSIVE:
Mumbai: The Union Budget has been a source of excitement for Dalal Street historically, but this time around investor sentiment is muted
Heightened uncertainties in the wake of the NBFC crisis and its impact on the economy have kept a lid on the euphoria ahead of the event in
the election results day.
Foreign institutional inflows have also ebbed, with FPIs remaining net sellers of Indian equities to the tune of
Rs 145 crore (till June 21) after buying around Rs 20,000 crore in April and May combined.
The election results were followed by a rate cut
by the Reserve Bank of India and a dovish commentary by global central banks
performance in agriculture and manufacturing sectors
inflation and the trade war.
Indian stock indices ended in the red for the third week on Friday because of these concerns and the
nervousness spilled over on Monday
The Sensex ended down 71.53 points or 0.2 per cent at 39,122.96 while the Nifty ended down 24.45 points or 0.2 per cent at 11,699.65
The Sensex has come off 2.9 per cent from its all-time high of 40,312.07 on June 4
Nifty has retreated 3.3 per cent from its record high of 12,103.05 on June 3.
Analysts said the broader market comprising mid- and small-cap
stocks, which have been drifting lower, reflect the pain in the economy
Any bounceback has been short-lived as investors lack confidence.
Nitin Bhasin, head of research, Institutional Equities at Ambit Capital
said the market is in a wait and watch mode ahead of the Budget and is not able to find any reason for a rally beyond the election