Street has a spring in the step, but no bottom yet
2 days, 22 hours ago

Street has a spring in the step, but no bottom yet

Live Mint  

Mumbai: Stock market indices have pulled back from the lows of early March, but veterans on the Street do not believe the market has bottomed out yet. The continued recovery has been aided primarily by FPI short-covering in Nifty and Bank Nifty futures and, to a lesser extent, by domestic institutional investors buying in the cash market amid stability in the rupee and underperformance of the US markets. The rupee has gained 1% to the dollar at 86.37 since 4 March, but FPIs have net sold ₹36,675.15 crore of cash market shares in the month through 19 March. While DIIs led by mutual funds have matched them with net purchases of ₹37126.47 crore, it's mainly short-covering by FPIs that has enabled the market to rally from its nine-month low hit earlier this month. The Nifty fell 16% from a record high of 26277.35 on 27 September to a low of 21964.6 on 4 March on FPI selling of cash market shares worth ₹1.99 trillion between October and February.

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