Investors are worried and cautious about the second wave of Corona, the lockdowns imposed in many states to prevent it, and its impact on GDP growth and the income and profits of companies.
Last week, mixed global signs and increasing cases of corona domestically saw an impact on the domestic stock. There was a weakness in the market in the previous week’s business. Fear of rising interest rates due to rising inflation in the US and the lockdown in the states due to Corona outbreak in the country affected investors’ sentiment. In the week ending May 14, the BSE Sensex closed down 473.92 points, or 0.96 per cent, at the level of 48732.55. At the same time, the Nifty fell 145.35 points, or 0.98 per cent, to close at the level of 14677.8.
According to experts, investors are worried and cautious about the second wave of Corona, the lockdown imposed in many states to prevent it and the effect it will have on GDP growth and the income and profit of companies.
FPI withdraws Rs 6,427 crore from stock market
Foreign portfolio investors (FPIs) have withdrawn Rs 6,452 crore from the Indian market so far in May. The second wave of the COVID-19 Pandemic caused the investment sentiment to be withdrawn from the market as investor sentiment was affected. According to depository data, foreign investors pulled out Rs 6,427 crore from the stock markets and Rs 25 crore from the bond market between May 1 and 14.
Market cap of top 8 companies decreased by 1.13 lakh crores
Last week, the total market cap of 8 of the top 10 valuable companies in the country fell to Rs 1,13,074.57 crore due to weakness in the market. The biggest losses were to the country’s largest IT company Tata Consultancy Services (TCS), Infosys and HDFC Bank.
Of the top 10 valuable companies, only two – Reliance Industries (RIL) and State Bank of India (SBI) – were profitable.
There was a decline in these sectors
Talking about sector index, in the last week’s trade, the Nifty metal index showed the most weakness. It fell by 4.5 percent. Apart from this, IT 2.6 per cent and Realty Index also lost 2.3 per cent.
However, during this period, the Nifty PSU Bank index rose 3.6 percent and the Nifty Media index rose 2.3 percent.
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