Mumbai: The stock market benchmark Sensex
today shed 213 points on fears that the government might step
in to check the rush of foreign funds into equities, but a
section of brokers saw it as a long due correction of
overstretched valuation.
Brazil's latest move to curb capital inflows and weakness
in European markets also weighed on the market sentiment,
although Finance Minister Pranab Mukherjee has said that the
rush of foreign funds into the country was not a matter of
concern.
The government has, however, said that it would continue
to monitor fund flow and act if there was any distortion.
Foreign Institutional Investors have pumped in over USD
15 billion in the country's equities market so far this year.
The Bombay Stock Exchange 30-share barometer settled the
day at 16,785.65, a net fall of 213.13 points or 1.25 per cent
from its previous close.
Industry chamber Assocham's suggestion to the government
on Tuesday that foreign fund inflows should be subject to a
two per cent tax may also have affected sentiments.
Hitech Securities Director Sanjeev Bhambri termed today's
fall as a healthy correction to the market, saying:
"Eventually the market will go higher by December than what it
is now".
Bureau Report
First Published: Thursday, November 19, 2009, 17:21