MUMBAI: Dalal Street, on Friday, survived a sharp selloff in Chinese equities, which plunged on renewed worries that the country's bull run has come to an end. Indian stocks ended a tad weak on Friday, but losses were marginal compared to the 7% fall in China's benchmark index as upsides in technology stocks helped limit the decline in indices. Sentiment, however, remained nervous after Greece's debt problems deepened amid deadlock between the country and its creditors.
Sensex declined 84.13 points or 0.30% to close at 27811.84, while the Nifty dropped 16.90 points or 0.20% to close at 8381.10. In the broader market, declines outnumbered advances 1517:1164 on the BSE. Fund managers said a drop in the quantum of selling by foreign institutions of late has partly averted a sharp decline in the Indian markets
"The relative resilience in Indian markets is because there is limited supply of paper and big FII selling seems to be more or less over for now. Domestic investors buying is also supporting the market," said Ritesh Jain, chief investment officer, Tata Asset Management Company.
On Friday, foreign institutional investors (FIIs) net sold shares worth almost Rs 200 crore, according to provisional data. The inflows on Friday have taken their total purchases tally to almost Rs 1,100 crore this week. FIIs, this week, have turned buyers for the first time since April-end.
But, analysts are unsure if other emerging markets including India would be able to stay resilient if Chinese stocks fall further.
"Further weakness in China during the coming months, possibly combined with sharp equity market losses and a creeping perception that the authorities are losing control of the situation, would likely have very detrimental effects for EM and beyond," said Barclays in a note to clients.
Source: economictimes
Sensex
declined 84.13 points or 0.30% to close at 27811.84, while the Nifty
dropped 16.90 points or 0.20% to close at 8381.10. In the broader
market, declines outnumbered advances 1517:1164 on the BSE. Fund
managers said a drop in the quantum of selling by foreign institutions
of late has partly averted a sharp decline in the Indian markets
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