JEMTEC

BSE Sensex have lost more than 10 per cent since the Budget Announcement of July 5, 2019. The imposition of tax surcharge on the super-rich, is likely to hurt Foreign Portfolio Investors (FPIs) and Foreign Institutional Investors (FIIs).There are approximately 45 per cent FPIs and FIIs, who will have to convert themselves into corporates or end-up paying higher tax. This perhaps hurts them and consequently, over the last few weeks, they continuously sell stocks in NSE and BSE.This sustained selling by Foreign Portfolio Investors and Foreign Institutional Investors Pulled down BSE and NSE indices. For the month of July, FPIs have net sold in the domestic market to the tune of $2 bn. Persistent selling by FPIs and FIIs, is likely to see more downward pressure in the stock exchanges. There is slowdown in Indian economy. Apart from super-rich tax surcharge, there are some other reasons for selling stocks by FPIs and FIIs.There is depreciation in rupee to the tune of Rs 69 a dollar, 0