Local cheer: Stock markets surge for third straight session

On Monday, they offloaded shares worth $97 million while on Tuesday, they sold stocks worth nearly $ 130 million, provisional data on the exchanges showed.

Written by FE Bureau

August 28, 2019 03:53 IST

RBI on Monday announced the transfer of Rs 1.76 lakh crore dividend and surplus reserves to the government, giving it some breathing space at a time when tax collections are below target.

The stock markets rallied for the third straight session on Tuesday as concerns on the country’s macro situation eased after the Reserve Bank of India said it would transfer surplus capital to the government. Moreover, the growth measures announced last Friday continued to cheer the sentiment. The benchmark has Sensex gained 940 points or 2.6% in two sessions.

However, although the enhanced surcharge on capital gains made by foreign portfolio investors (FPI) was withdrawn, they remain sellers. On Monday, they offloaded shares worth $97 million while on Tuesday, they sold stocks worth nearly $ 130 million, provisional data on the exchanges showed.

After the Budget, they have cut their exposure by about $ $3.5 billion, Bloomberg data showed.
RBI on Monday announced the transfer of Rs 1.76 lakh crore dividend and surplus reserves to the government, giving it some breathing space at a time when tax collections are below target.

This article was first uploaded on August twenty-eight, twenty nineteen, at fifty-three minutes past three in the night.