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Markets volatile after Pulwama attack, foreign investors pull out Rs 3,000 cr in 3 days

Agencies
February 24, 2019

Mumbai, Feb 24: The Pulwama attack on February 14 continues to have multiple repercussions across political, economic and social dimensions. The latest one being the massive outflow of foreign funds following the same.

Foreign Institutional Investors (FIIs) -- which profoundly influence investor sentiments at the bourses given its substantial sum -- pulled out over Rs 3,000 crore in just three days after the attack. But in the comparable period, the Domestic Institutional Investors (DIIs) maintained their support pumping Rs 4,353.84 crore into the market.

"Tensions between India and Pakistan always makes the market volatile. FIIs are net sellers post this development because they wanted to protect their portfolio," said Debabrata Bhattacharjee, Head of Research, CapitalAim. DIIs are awaited and looking at this as an opportunity to invest in a quality stock with fair valuation, he added.

Though the size of India and Pakistan trade is limited, markets tend to get affected more by investor sentiment than actual numbers. Since the attack, India has taken a tough stance and outright combat may still be on the cards.

Analysts have said that traders are closely looking at India`s stance in response to the attack, which has been nothing less than aggressive. Since the attack, India has revoked the Most Favoured Nation (MFN) status given to Pakistan and imposed a 200 per cent import duty on its goods.

"While political relations between the two countries have most certainly influenced trade, it is important to note that no measures having a direct negative impact on trade were adopted by the two countries unlike instances in the past when political skirmishes led to adopting measures which restricted trade," a working paper by ICRIER said last year.

The reversal of trend was visible as FIIs got a major boost earlier in February. Along with the overall equity market, the FIIs reacted positively to the Interim Budget and the rate cut by the Reserve Bank of India.

However, Deepak Jasani of HDFC Securities anticipates a stable foreign inflow in the upcoming trade sessions. A strong reason for this, Jasani added was the "favourable interest rate scenario".

Besides, Bhattacharjee said that if FIIs are on selling mode then market will correct from current levels because they have a strong presence in Indian Equity Market.

A notable exception came on Friday, with the Rs 6,122.41 crore inflow, the highest this month but experts said it would not mean a reversal in trend as it came amid the Kotak Bulk Deal.

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News Network
February 21,2020

New Delhi, Feb 21: Global terror financing watchdog FATF on Friday decided continuation of Pakistan in the "Grey List" and warned the country that stern action will be taken if it fails to check flow of money to terror groups like the LeT and the JeM, sources said.

The decision has been taken at the Financial Action Task Force's plenary in Paris.

The FATF decided to continue Pakistani in the "Grey List". The FATF also warned Pakistan that if it doesn't complete a full action plan by June, it could lead to consequences on its businesses, a source said.

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Agencies
July 30,2020

Mumbai, Jul 30: Counterfeiting incidents have increased 24 per cent in the country in 2019 over the previous year, creating an over Rs 1 lakh crore hole in the economy, according to a report.

The report also said counterfeiters are having a free run due to the pandemic-driven disruptions to organised supply chains and the resultant spike in consumer demand.

According to the report by ASPA, a self-regulated industry body of anti-counterfeiting and traceability solutions providers, counterfeiting has risen steadily in the last few years, and exploiting the pandemic as a cover for their activities.

Between February and April 2020, over 150 incidents of counterfeiting cases were reported, mostly about fake PPE kits, sanitisers and masks taking advantage of the high demand for these products, it noted.

"There was a 24 per cent increase in counterfeiting in 2019 over 2018, leading to the loss of more than Rs 1 lakh crore to the overall economy," said Nakul Pasricha, president of Authentication Solution Providers Association.

The association works with global authorities like the International Hologram Manufacturers Association, Counterfeit Intelligence Bureau of the Interpol, and domestic industry lobbies like Ficci, he said.

Counterfeiting is a universal issue and is 3.3 per cent of global trade, according to the OECD data, impacting social and economic development across the world.

The report lists the currency, FMCG, alcohol, pharma, documents, agriculture, infrastructure, automotive, tobacco, lifestyle and apparel, as the 10 sectors impacted most by counterfeiting.

Among these, currency, alcohol and FMCG continue to be the top three sectors with the highest counterfeiting in the last two years. The FMCG sector is most vulnerable, as counterfeit incidents rose 63 per cent between 2018 (79) and 2019 when the reported cases jumped to 129.

Within the states, the fakers have a free run in Uttar Pradesh, Bihar, Rajasthan, Madhya Pradesh, Bengal, Punjab, Jharkhand, Delhi, Gujarat, and Uttarakhand, calling for urgent actions to frame anti-counterfeiting policy measures.

According to the report, UP continues to be on top followed by Bihar, Rajasthan, and together these three states represent almost 45 per cent of all counterfeiting reported in the last two years.

What is more alarming is that counterfeiting is not limited to high-end luxury items today, as common everyday items as fake cumin seeds, mustard cooking oil, ghee, hair oils, soaps, baby care vaccines and medicines are aplenty in the markets.

"There is an urgent need for building and nurturing authentication ecosystems in the country with the active involvement and active participation of all stakeholders," said Pasricha.

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News Network
June 19,2020

Jun 19: Ten Indian Army soldiers including four officers were released by the China’s People’s Liberation Army (PLA) on Friday capping three days of hard negotiations that followed the bloody battle at the eastern Ladakh’s Galwan valley on Monday.

The 10 jawans returned around 5.30 PM on Friday to Patrol Point 14 (PP-14) after Indian team leader Major Gen. Abhijit Bapat, the commanding officer of the Third Div made it clear to the Chinese that there couldn’t be any progress in the disengagement talks unless the soldiers were returned safely.

Asked to comment on the release of Indian soldiers, the Indian Army maintained silence. The force released a brief statement on Thursday stating that all its men were accounted for.

However, the extent of the brutal clash can be gauged from the fact that 76 Indian Army soldiers are still in the hospital out of which 58 soldiers have “minor injuries” and “should be back on duty within a week”, according to Army sources.

Return of the Indian soldiers has been the main point of negotiations for the last two days. The situation is now calmer at areas near PP-14 in the Galwan valley after the return of Indian soldiers even though large numbers of troops from both sides are still present in the area.

Meanwhile analysis of satellite images has revealed a large presence of Chinese troops in the northern banks of Pangong Tso, a disputed territory for years.

“In the past month, Chinese forces have become an overwhelming majority in the disputed areas (on the north bank of the 135 km long lake). Significant positions have been constructed between Fingers 4 and 5, including around 500 structures, fortified trenches and a new boat shed over 20 km further forward than previously. More structures appear to be under construction,” says a report published in the Strategist, the journal of the Australian Strategic Policy Institute.

“The scale and provocative nature of these new Chinese outposts is hard to overstate: 53 different forward positions have been built, including 19 that sit exactly on the ridge line separating Indian and Chinese patrols,” says the report, accompanied by satellite images showing overwhelming PLA presence.

The June 6 Corps Commander level meeting between the Indian and PLA armies did not result in a solution to the contentious muscle flexing by the Chinese on the shores of the Pangong lake. The meeting ended with the conclusion that more Lt Gen level talks between the two armies were needed to resolve such issues.

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