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Markets end in red on P-Note norms, fears of rising interest

The NSE 50-share Nifty also dropped by 65.20 points or 0.83 per cent to 7,749.70.

Mumbai: Markets ended in red on concerns about future foreign equity inflows triggered by tougher norms from the Securities and Exchange Board of India (SEBI) on Offshore Derivative Instruments (ODIs) or participatory notes (P-Notes).

Sentiment was also affected on fear that the US central bank may resume raising interest rates in the United States as early as next month. State Bank of India (SBI) slumped 7.32 per cent. SBI announced that it is seeking in-principle sanction of the Government of India (GoI) to enter into negotiation with its five subsidiary banks to acquire their businesses, including assets and liabilities.

The BSE benchmark Sensex resumed higher at 25,528.80 and shot up further to 25,927.31 on initial buying, after investors raised their exposure following exit polls that showed BJP coming to power in Assam for the first time. However, it dropped afterwards to 25,251.90 before ending the week at 25,301.90, showing a loss of 187.67 points or 0.74 per cent. The NSE 50-share Nifty also dropped by 65.20 points or 0.83 per cent to 7,749.70.

"Market participants were worried about the flow of foreign funds into India after SEBI tightened norms for issuers and subscribers of ODIs or participatory notes for the purpose of enhancing the transparency and control over the issuance of ODIs," said Shreyash Devalkar, Fund Manager Equities, BNP Paribas MF.

( Source : PTI )
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