Selling pressure mounted on the Indian stock markets on Thursday after the SEBI regulation on F&O, and with another main reason being the continued foreign outflows from Indian markets to other Asian markets.
Indian markets opened with gains on Thursday, despite selling pressure in major global stock markets. Both indices registered marginal increases at the opening.
As the selling pressure continues for the last two consecutive days following the Union Budget announcement, the Indian stock market is expected to follow the global trend as the S&P 500 and Nasdaq hit multi-week lows.
Indian markets started the week with a decline following global market weakness after U.S. President Joe Biden opted out of the presidential race. Indian markets are also facing selling pressure ahead of the Union Budget announcement by the government.
The selling pressure in the Indian markets persists with the FPI (Foreign Portfolio Investment) selling during May standing at Rs 17,848 crore so far this month. Data from the National Securities Depository Limited (NSDL) shows that the net FPI investment is negative for May.
Indian benchmark indices on Wednesday deviated from their three-day winning streak and concluded in negative territory amidst cautious sentiment of investors preceding the release of crucial US inflation data and the ongoing elections.
After a positive start on Tuesday, the Indian stock market encountered selling pressure, leading to both indices slipping into the negative territory by the time the closing bell rang.
The shares of Kotak Mahindra Bank fell around 10 percent after RBI barred the bank for on boarding new online customers, and issuing new credit cards. The investors reacted negatively since the opening of the market on the Thursday session, selling pressure is high on the Kotak shares.