Capital outflows News

Sustained capital outflows along with disappointing domestic macroeconomic indicators largely kept forex market sentiment highly volatile.

Stocks consolidated further on Friday as absence of any big trigger forced investors' hand to stay cautious, with both Sensex and Nifty closing on a flat note with a positive leaning.

The broader NSE Nifty ended up by 13.70 points, or 0.14 percent, at 9,929.90, after moving between 9,964.85 and 9,917.20.

The benchmark BSE Sensex dipped below the key 26,000-mark by falling over 250 points Thursday, extending losses on sustained capital outflows by foreign funds and heavy selling by retail investors amid a weak trend overseas.

If the Fed lays out an aggressive schedule of future rate increases, stock markets could become very volatile and even plummet, say strategists.  

China UnionPay -- which provides almost all the country's bank cards -- will limit annual withdrawals to 100,000 yuan (USD 16,000) each year, China National Radio (CNR) said.

The 30-share barometer resumed weak and touched a low of 26,307.07 before recovering to settle at 26,425.30, a net gain of 54.32 points or 0.21 percent.

Reflecting the free-fall in the stocks, the benchmark Sensex crashed below the psychological 27,000-level by tanking 722.77 points to 26,717.37.

On its third straight fall Monday, the benchmark BSE Sensex plunged 261 points to a fresh three-and-a-half months low of 27,176.99 on sustained capital outflows and disappointing March quarter earnings so far.

IMF chief Christine Lagarde Tuesday warned of a repeat of high market volatility and capital outflows when US Fed hikes rates next time and asked India and other emerging markets to be prepared for such an eventuality.

BSE Sensex fell by 31 points to close at one-and-a-half month low of 27,319.56 due to continued selling in IT, FMCG, banking and oil stocks amidst disappointing economic data and capital outflows.

The 50-issue CNX Nifty of the NSE dipped by 70.10 points, or 0.90 percent, to 1-1/2-week low of 7,721.30. The Nifty's drop was also its steepest since July 11 (down 108.15 points.)