Nifty $ return slips 2.6% post Budget as FII-heavy stks correct

Indian equities have returned the least among 20 most followed global markets in dollar terms since the first week of this month, when the budget was presented. The dollar adjusted performance of the Nifty is the weakest since July 4, with the benchmark index falling 2.61 per cent. By contrast, most other global indices have done better — from negative 2.5 per cent to positive 2.1 per cent — in the past fortnight.However, in the year to date and over the past 12 months, the Nifty has returned 9.1 per cent and 6 per cent, respectively, in dollar terms.Over the past couple of weeks, 13 out of 15 FII-heavy large stocks have corrected. FII-heavy lenders, such as Axis Bank, HDFC Bank and ICICI Bank, have led the decliners, losing 7.3 per cent, 3.9 per cent and 3 per cent, respectively, in dollar terms after an increase in the tax threshold for the highest earners in the country. Peak long-term capital gains on FPIs would now be 14.25 per cent.Among the other decliners were L&T, Bajaj Finance, Maruti Suzuki and TCS, which fell 7.8 per cent, 7.6 per cent, 7.6 per cent and 6 per cent, respectively. In rupee terms, the correction is slightly less pronounced. The dollar has strengthened by 0.5 per cent against the rupee from the pre-budget level. The US currency closed at 68.8 against the rupee on Wednesday. Only two outliers in the period were Infosys and Kotak Mahindra Bank, which climbed 7.7 per cent and 1.9 per cent, respectively, over the past couple of weeks.70269693

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