The Indian indices contradictory to the global indices, especially the Asian markets ended the day's trade on Friday in green. The BSE Sensex closed at 73,088.33, marking a gain of 599.34 points. Similarly, the NSE Nifty ended at 22,149.80, up by 153.95 points.
This, as, apart from starting the day in red, the external indicators, vis-a-vis the major Asian indices, including Nikkei, Hang Seng and KOSPI had an eventfully underwhelming day the equity markets.
Just in the four days of trading, the FIIs withdrew as much as Rs 20,000 from the markets. | File photo
FIIs Pull Out In Mass
Despite this positive end, it cannot be underscored more as to how tumultuous, the rest of the week, before Friday was. It in turn was a continuation of the trading week, right before that.
The factor that keeps propping up in discourses is of Foreign Institutional Investors. Just in the four days of trading, the FIIs withdrew as much as Rs 20,000 from the markets.
Now, this is transpiring at a time, when India is in the middle of the largest electoral exercise in the world, where, as part of the 2024 Lok Sabha elections, nearly a billion people will queue up at the polling station to cast their votes.
In addition, it is also the time, when companies are declaring quarterly and yearly earnings. | File Photo
In addition, it is also the time, when companies are declaring quarterly and yearly earnings.
The third factor, takes us back to the earlier point, concerning the Asian markets and American markets, that closed in Red on 19 April. Here, Japan's Nikkei ended the day's trade on a negative note at 37,068.35, losing a colossal 2.66 per cent. Meanwhile, in China, Hong Kong's Hang Seng ended on 16,224.14, sinking 0.99 per cent. Meanwhile, South Korean KOSPI also drowned in red, losing 1.63 per cent to reach 2,591.86.
Global Markets See Red
In addition, amongst the major indices, barring Dow Jones, S&P 500 and Nasdaq ended the day in red on 19 April.
These numbers tell us a story, that adds to the third major factor, that could a reason behind the FII exodus in India.
The uncertainty that persists on a global scale, may it be the war in Ukraine or the dire crisis in Gaza and the developing rumblings between Israel and Iran in Middle-East, have raised question on the potential disruptions in supply chain and particularly crude oil prices. This becomes crucial for India, as it is a giant importer of a lot of the goods, particularly Oil.
All these factors, particularly anxiety over election results and underperformance of some companies, like Infosys, in addition to the recent deal on double taxation avoidance agreement (DTAA) may have resulted in FII's vanishing act.
