The BSE Sensex plunged more than 500 points while Nifty50 broke below 11,500 levels on July 19.
On the sectoral front, the BSE Auto index led the fall, followed by Realty, Bankex, and consumer discretionary stocks.Sectors which bucked the trend include power, consumer durable, and metals.
Foreign portfolio investors (FPis) should consider the option of structuring themselves as companies rather than trusts to avoid paying the increased surcharge announced in Budget 2019, Finance Minister Nirmala Sitharaman said, in a discussion on the Finance Bill in the Parliament on July 18.
FPIs registered as trusts will have to pay the new tax surcharge, Sitharaman said, dashing hopes that the government may tweak relevant portions of the Finance Bill to ring-fence FPIs from the effects of the “super-rich” tax.
So far in July, foreign investors have pulled out more than Rs 5,000 crore from the cash segment of the Indian equity market.
The broader market has been under pressure throughout this week. On Friday, more than 300 stocks touched their fresh 52-week low including names like Eicher Motors, Maruti Suzuki, HEG, M&M, TVS Motor, Hindustan Zinc, GAIL India, Yes Bank among others.
Weak monsoon progress
Till July 19, cumulative rainfall was 15.8 percent below normal levels and the weekly rainfall 19.8 percent below normal. On a regional cumulative basis, spatial distribution has been deficient across India.
Out of the 36 sub-divisions across India, till date, 18 have received deficient rainfall, 16 have received normal rainfall, three have received excess rainfall, and one received scanty rainfall, said a Kotak Institutional Equities report.