Nearly a day ago, the monthly inflows by foreign portfolio investors remained positive at dollar 2.9 billion in total. Indian shares revived slightly in line with the Dow Jones Mini futures and the European markets. In the meantime, fears of a second wave of Covid-19 cases across China and the US continue to pester investors. That is the reason why Indian equity markets on Monday started on a week note in the line with global stock market. Share markets showed a downward trend. The 30 share Sensex was down by more than 552 points or by 1.63% to close at 33,228.8. Speaking the 50-share index NIFTY was down by 159.2 points closing at 9,813.7.
As for the NIFTY, it was down 193 points intraday trade but ended the session a little bit off the days’ lows as the markets were supported by the gains in the highly influential Reliance Industries which touched yet another 52-week high after it announced two more deals for its telecom wing Jio over the weekend. As per a report by Motilal Oswal Institutional Equities, the value of FPI holdings in the Indian markets has come down in line with the market correction. The fact remains that the peak market value of FPI holdings remained at dollar 473 billion in the year 2019. Subsequently the correction in the markets as resulted in the exhaustion of $ 120 billion in the overall market value of FPI holdings in India. This depletion is much more pronounced in the broader markets. Strategic market managers are unsure to have the second wave of Covid-19 will pan out the economy. Still another shut down could be on the way if the pandemic situation gets worse.
It will naturally bring about further adverse effects on the economy and will cast ominous reflections in the markets. European countries like France, UK, Germany have their stock markets fallen more than 1%. The American stock market, the Dow Jones Mini futures were low by 649 points at the time of the press. Sell-off was the order of the day on Monday in Asian markets like the once in China, Taiwan, and Hong Kong. The sell-off falling in between 1.02% – 2.16%. KOSPI (South Korea’s bourse) was down this plummet in global markets is the reflection of a spike in the Coronavirus. Japan and the US also saw a spike in new cases, making investors risk of mood. The rise in new cases has given rise to fears of a re-lockdown globally.
