FPIs continue to pull out investments from the Indian equities
2 hours ago Picture used for illustrative purpose. Foreign portfolio investors (FPI) continue to pull out investments from the Indian equities amid the severe COVID-19 crisis and the lockdowns across states.
So far in May, FPIs have pulled out a net investment of Rs6,427 crore from the equities segment, showed NSDL data.
The subdued investor sentiments come on the back of the deepened Covid crisis in the country. The lockdowns and restrictions across states also have weakened the prospects of economic recovery, analysts said.
The selling in May continues after FPIs withdrew net investments of Rs9,659 crore in April. The bearish trend last month came after incessant buying in the preceding six months.
Highlights
Sensex had crossed 50,000 levels in early trading hours.
Capital goods and consumer durables sectors stocks also ended in the red.
Indian benchmark indices extended their bullish run for the fourth straight day on Thursday amid a largely positive trend in global equities. Sensex and Nifty ended at 49,765 and 14,894 points, respectively.
The US Fed decision to keep policy loose and impressive investments by Foreign Institutional Investor (FIIs) helped markets maintain the positive momentum. On Wednesday, FIIs had invested worth Rs 766.02cr in cash, and Rs 436.2cr in Index futures in Indian markets.
In the ongoing week, Sensex and Nifty have gained 1,887 points and 553 points in the last four sessions, respectively, adding Rs 6.68 lakh crore to investors wealth during the said period.
Highlights
The bullish sentiment amid a crisis came on the back of the US Fed decision to keep policy loose.
Most of the heavyweights were trading in the green zone.
Investors are likely to take note of earnings that are likely to be announced today.
Indian Indices extended their upward movement for the fourth straight day on Thursday, with Sensex trading 150 points higher in the early hours of trade. The bullish sentiment amid a crisis came on the back of the US Fed decision to keep policy loose and impressive investments by Foreign Institutional Investor (FIIs).
Notably, FIIs had invested worth Rs 766.02cr in cash, and Rs 436.2cr in Index futures in Indian markets on Wednesday.
The Income Tax department on Wednesday said that concessional rate of tax of 5 per cent shall continue for certain interest income of foreign portfolio investors. Clarifying on reports which said that concessional withholding tax rate of 5 per cent on interest income of FPIs has been withdrawn, the Central Board of Direct Taxes (CBDT) said there is no change in the rate of tax chargeable. It is hereby clarified that there is no change in the said provision even after amendment of section 115AD vide Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 and the concessional rate of tax of 5% shall continue to be applicable for interest income referred to in section 194LD of the Act, the CBDT said in a statement.