Indian stocks dropped on Monday as jitters of a global credit squeeze and apprehensions of a cool-off in the US, the world's largest economy, hit Asian markets yet again. The benchmark Sensex of the Bombay Stock Exchange ended a volatile session lower by 235 points, or 1.55 per cent, at 14,903, while the 50-share Nifty of the National Stock Exchange lost 1.41 per cent, or 62 points, to close at 4,339.50. During the day, the Sensex oscillated between 14,705 and 14,928 points.
July 23, 2007
In July alone, foreign institutional investors (FIIs) pumped in Rs 23,872.40 crore, more than the Rs 18,932 crore that came in the previous six months.
According to brokers, FIIs have been selling in most emerging markets to reduce their exposure to equities. However, in August, they have sold equity worth a net Rs 775.30 crore, while domestic mutual funds have bought shares worth a net Rs 102 crore.
Though the gap between Nifty August futures and the underlying has shrunk to 17.50 (indicating a build-up of long positions at lower levels), derivative analysts expect bears to dominate the market through the week.
"The Nifty futures discount to the underlying has reduced as investors are willing to get in at lower levels. However, bears could have an upper hand till the end of the week," said Guru Datta Dhanokar, derivatives strategist with Almond Global Securities.
All major Asian indices except those in China closed on Monday in the red.