Sensex plunges |
After Friday`s rebound in the Indian stock prices, the benchmark indices resumed their downtrend and dived in opening trade on Monday, with the Bombay Stock Exchange Sensex falling over 500 points and NSE`s Nifty slipping below the psychologically important 10,850 mark. Monday`s selloff was to an extent a reaction to the selloff seen in Asian markets as well as due to an evolving security situation in Kashmir hurt investor sentiment. As Prime Minister Narendra Modi held a crucial Cabinet meeting at his 7, Lok Kalyan Marg residence on Monday morning, some media reports suggested the government was preparing to withdraw the sensitive special provisions for Jammu & Kashmir under Article 35A. The government has already imposed restrictions under Section 144 of the CrPC in Srinagar district from Sunday midnight, and some political leaders have been put under house arrest. On Friday, Foreign Portfolio Investors were sellers of domestic stocks to the tune of Rs 2,888 crore against Rs 2,812 crore inflows from DIIs. FPIs offloaded stocks worth more than 15,000 crore in July, wiping out two¬-third of the gains made from the lows of this calendar year. This has been the trend since the budget announcement which had no big reforms or any major stimulus.
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