The foreign institutional investors (FII) have pulled out Rs 1,784.65 crore from the domestic stock market so far after the Union Budget was presented in the parliament on February 1.
The
Union Budget 2020-21 failed to provide meaningful stimulus to revive the economy or troubled sectors, analysts said adding that the measures announced Budget would not result in a major impact on the slowing economy in the short-term.
Certain budget proposals spooked investors as confusion over dividend distribution tax and new income tax regime prevailed.
Giving a thumbs down to the Budget as failed to live up to market expectations, domestic
stock market an intense broad-based selloff on February 1 with BSE Sensex plunging 987 points and Nifty falling around 2 percent.
The FII net sold shares worth Rs 1,199.53 crore in the stock market on that day, data from exchanges showed.
On February 3, the FIIs sold additional shares worth Rs 1,200.27 crore in the domestic markets.
However, the market found its way to recoup the losses of the Budget day amid positive global cues on February 4 and 5.
FIIs bought net Rs 366.21 crore on February 4 and additional Rs 249.94 crore worth local shares on February 5.
The benchmark indices rebounded sharply on February 4, with the Sensex rising more than 900 points and the Nifty climbing near 12,000 levels.
The investors also keenly watched the Reserve Bank of India's monetary policy announcement on Thursday which kept the key repo rates unchanged.
