Bull-run takes a pause amidst volatility, FM cautions retail investors

PFW Bureau / Oct 12

The bull run started since September 19 has taken a pause on Friday amidst volatility as Bombay Stock Exchange (BSE)’s Sensex dipped 2.10% or 395 points to end at 18,419 points.

However, 30-stock Sensex gained 3.63% or 645 points between October 5 and October 12 on the back of unprecedented foreign fund flow. Similarly, the National Stock
Exchange (NSE) S&P CNX Nifty went up by 4.6% or 243 points to end at 5,428 points.

Except IT stocks, a  majority of the counters registered a major gain. BSE Oil & Gas gained 4.61% or 466 points, PSU gained 3.98% or 332 points and Auto jumped 2.78% or 148 points during the corresponding period.  

According to Securities and Exchange Board of India (SEBI), the Foreign Institutional Investors (FIIs) have pumped  Rs 1,988 crore on the four trading sessions as against the withdrawal of Rs 1,025 crore by the Mutual Funds (MFs).

The bull-run started from September 19 following the Federal Reserve’s decision to cut interest rate. The FIIs have pumped money by diverting their funds from the emerging markets to the domestic market.

The bourses have witnessed a big volatility because of the political uncertainty at the Centre. The rift between UPA and Left Parties has led to the nervousness in the market.

Union finance minister P Chidambaram has cautioned retail investors to be careful while participating in the market. His statement on Friday that some speculators may be propelling this unexpected market rally has led to the dip in the market. This has witnessed Sensex loosing 395 points on October 12.