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Friday, June 01, 2012

The overseas capital flows have turned negative

India’s slowing economy, slowdown in China and worsening global risk aversion has registered a sharp fall on Friday's Stock Market with the Sensex taking a 253.37-point plunge to close below the 16,000 mark which kept investors away.
The Sensex opened flat, quickly slipped into a negative zone and closed at 15,965.16 points. The fall was triggered by weaker global shares after surveys showed Chinese factory output barely growing and powerful European manufacturing countries falling deeper into the malaise. The NSE 50-share Nifty too tumbled down by 82.65 points to 4,841.60.
Meanwhile,The rupee, meanwhile, gained 54 paise to end at 55.54 against the dollar on persistent dollar selling by exporters with the RBI hinting at the possibility of opening a separate dollar window for oil firms. However, with a 0.3 per cent on the week, the domestic currency posted a ninth consecutive weekly drop, worst losing streak since the Lehman crisis.
“The overseas capital flows have turned negative in the wake of the controversy over GAAR, Vodafone tax dispute and weak economic fundamentals,” Amar Ambani, head of Research, IIFL, said. Investors wealth, or market capitalisation, declined by Rs 91,000 crore. Capital goods, power, auto, refinery and IT indices logged losses of at least 2 per cent while shares of banking, metal, realty, PSUs and healthcare sectors also moved down. In the Sensex pack, 27 of the 30 stocks ended the session with losses with Tata Motors emerging as the biggest loser with a fall of 3.73 per cent.
The BSE Mid-Cap index fell 1.46 per cent, while the BSE Small-Cap index fell 1.22 per cent. Eighty two percent of the 246 mid-cap scrips declined, while 70 per cent of the 535 small-cap scrips declined on the BSE.

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