'Steam' of stimulus erupts: offloading of foreign funds, banking, IT stocks crash

(Gujarat News Correspondent) Mumbai on 14 May 2020, Thursday

The phased announcement of the Rs 50 lakh crore mega economic stimulus package announced by the Modi government, which was launched by the finance minister yesterday, is in fact the government doing its own wow and the people are disappointed that nothing concrete will come out of it. The bullish steam shown by the markets on the first day in anticipation of stimulus was released today.

Finance Minister Nirmala Sitharaman is making more and more announcements about what the Modi government has done and people are beginning to realize that nothing special can be done in this great crisis. They have to find a way out of this crisis without relying on the government. Anxiety is starting to occur. With this stimulus package, India's fiscal deficit is projected to double to 7.5 per cent in the current financial year 2021. Foreign funds, outraged by the government's domestic approach, have massively offloaded stocks.

With special banking-finance stocks making big sell-offs in IT-software services stocks and selling in oil-gas, metal-mining, consumer durables stocks, the Sensex fell 3.6 points to close at 31,13.5 and the Nifty spot closed at 20.50. Were living. The US dollar had gained 3 paise to Rs 2.7 against the rupee. International crude oil prices continued to improve this evening, with Nymex crude rising ૧ 1.06 a barrel to ૨૬ 2.31 and Brent crude લર 1.05 to close at ૨ 70.81.

In Reliance Industries, the stock fell by Rs 20.5 to Rs 19.5 on continued profit-booking of funds. In banking-finance stocks, the BSE Bankex Index fell by 2.15 points to 31,612.8. IndusInd Bank fell by Rs 20 to Rs 2.50, HDFC Bank fell by Rs 4.5 to Rs 2.50, State Bank of India fell by Rs 2.15 to Rs 13.5, ICICI Bank fell by Rs 10.15. Axis Bank fell by Rs 11.5 to Rs 301.60, Kotak Mahindra Bank fell by Rs 13.5 to Rs 114.5.

While Chaula Fin fell by Rs 10 to Rs 13.5, ICICI General Insurance fell by Rs 4.5 to Rs 19.15, L&T Finance Holdings fell by Rs 4.5 to Rs 4.5, Mahindra & Mahindra Finance by Rs. 4.50 down to Rs. 12.50, Edelweiss down Rs. 3.10 to Rs. 31.50, HDFC Ltd. down Rs. 20.5 to Rs. 19.50, HDFC Life down Rs. 21.5 to Rs. 20 remained.

The BSE IT index fell by 200.5 points to close at 12,9.21 on the back of strong selling in IT-software services stocks. MindTree fell by Rs 4.5 to Rs 2.50, Tech Mahindra fell by Rs 4.5 to Rs 314.5, Infosys fell by Rs 2.50 to Rs 3.10, NIIT Technology fell by Rs 20 to Rs 15. 30, TCS fell by Rs 4.5 to Rs 1,200.50, Wipro fell by Rs 4.5 to Rs 19.05, HCL Technology fell by Rs 11.50 to Rs 316.5.

Rising market breadth in small, mid-cap, cash stocks remained negative. Out of the total 20 scrips traded on the BSE, the number of decliners was 120 and the number of gainers was 9. Of course, only buyers in 7 stocks had a bullish circuit. Of the 313 stocks, only sellers had a bearish lower circuit.

FIIs-FPIs investors were net sellers of Rs 212.5 crore in cash today and Thursday. Of this, a total of Rs 206.50 crore was sold against a total purchase of Rs 2.17 crore. On the other hand, DIIs-domestic institutional investors made a net purchase of Rs 202.5 crore in cash today.

A total of Rs 2.50 crore was sold against a total purchase of Rs 216.15 crore. With the massive rally in stocks today, the accumulated market capitalization of stocks of companies listed on the BSE - investors' wealth fell by Rs 1.8 lakh crore in a single day to Rs 12.5 lakh crore.