FIIs pull out Rs 5,000 crore from equities post-Budget:

The Exodus of FIIs continue though Times of India and Economic Times are trying to do face saving for the UPA. One of the relatives of Sonia Gandhi is reportedly having good holding in the Times Group,

The UPA Government will take us to hell with such High Fiscal Deficit and the Royal Excheque already empty due to ills committed in the last 5 years of its Misrule:

Foreign institutional investors (FIIs) have pulled out over $1.06 billion (around Rs 5,000 crore) from the Indian stock market after the presentation of the Union Budget on July 6. Their net sales in the last six trading days have been Rs 5,240 crore.

However, domestic institutions were aggressive during the period and bought shares worth Rs 44.6 crore. The BSE Sensex has lost 1,512 points, or 10.14 per cent, in the same period.

On Monday, the stocks fell to a two-month low, led by Tata Steel and other metals producers after commodity prices declined, and on concerns that government measures might not be enough to revive economic growth.

Tata Steel, the largest maker of the alloy, slid almost 4 per cent. Hindalco Industries, the no. 1 aluminum producer, declined 3.4 per cent. JSW Steel slumped 6 per cent.

“People want to wait for some positive action because they have been disappointed that nothing has come from the Budget,” said S Krishnakumar, vice-president of equities at Sundaram BNP Paribas Asset Management Co in Chennai, who manages $420 million. Finance Minister Pranab Mukherjee on July 6 unveiled the widest Budget deficit in 16 years and failed to lay out firm plans to sell state-run assets.

The Bombay Stock Exchange’s Sensitive Index, or Sensex, fell 103.9, or 0.8 per cent, to 13,400.32, its lowest since May 15. The drop extended a 9.5 per cent slide last week, the biggest retreat since the week ended October 26.

The S&P CNX Nifty Index on the National Stock Exchange lost 0.8 per cent to 3,974.05. The BSE 200 Index declined 1.3 per cent to 1,627.41.

Tata Steel fell 3.9 per cent to Rs 339. Hindalco retreated 3.4 per cent to Rs 70.3. JSW Steel, India’s third-biggest producer, fell 6 per cent to Rs 485.25. A measure of six metals traded on the London Metals Exchange, comprising copper, aluminum, lead, tin, zinc and nickel, fell 1.3 per cent.

‘No positive trigger’“There is no positive trigger for the market,” said Alex Mathews, head of research at Geojit BNP Paribas Financial Services Ltd. “Weak sentiment after last week’s budget is spilling over to this week.”

Mukherjee said on July 11 that the nation’s central bank would act “as and when” needed on interest rates. “You cannot expect an omnibus reply, but as and when the situation will require appropriate action it will be taken,” he said at a press briefing after meeting central bank officials in New Delhi. The MSCI Asia Pacific Index dropped as much as 2.6 per cent, the most since May 18. The gauge has lost 6.7 per cent from an eight-month high on June 12 as optimism for a global economic recovery eased.

‘Worried’“People are worried about the overall recovery globally,” Krishnakumar said. Reliance Industries, India’s most valuable company, declined 1.4 per cent to Rs 1,750.95. Jaiprakash Associates, the biggest maker of dams, fell 4.6 per cent to Rs 177.5. Larsen & Toubro, India’s largest engineering company, slid 2 per cent to Rs 1,330.1. Reliance Infrastructure, the second-biggest utility, lost 6.2 per cent to Rs 964.45.

The earnings of Sensex companies may decline 6.8 per cent in the quarter ended June, analysts Sanjeev Prasad, Bhavesh Shah and Sunita Baldawa of Kotak Securities said in a research note On Monday. [WIth inputs from Internet]