Weak Monsoon and Foreign Selling Pressure Indian Markets as Nifty Posts Monthly Loss
By
Alex Gabriel Simon
Crackles when you bite it. Shows the baker did the work.
Summary
Indian equities entered June on a weak note after a selloff on the last Friday of May, driven by foreign selling ($2.2 billion pulled out due to MSCI rebalancing), geopolitical uncertainty, and a weak monsoon forecast. The Nifty index suffered another monthly loss. Global cues are also unfavorable with rising oil prices and a stronger dollar. The biggest risk highlighted is to rural consumption, a key driver of India's economic growth, as a weak monsoon threatens inflation and growth prospects.
Key quotes
· 3 pulledProvisional data showed global funds pulled out about $2.2 billion from local shares on Friday, largely due to the MSCI rebalancing.
The biggest risk is to rural consumption, a key driver of economic growth.
Indian equities enter June on the back foot after a bruising end to May.
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