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Govt's surcharge rollback fails to curb FPI selling spree, say experts

Experts say concerns about a slowdown in the domestic economy, combined with fears of a global recession, have eclipsed the move to withdraw the surcharge

The stimulus package announced by China and the optimism around the US-China trade agreement has further bolstered FPI sentiment towards emerging markets (EMs) as a whole
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Sundar SethuramanJash Kriplani Mumbai
The rollback of the tax surcharge on foreign portfolio investors (FPIs) has failed to curb their selling spree, and they have offloaded equities worth more than Rs 4,000 crore since Monday.  

Experts say concerns about a slowdown in the domestic economy, combined with fears of a global recession, have eclipsed the move to withdraw the surcharge.

“The immediate reaction of the market to the announcement has been a tad underwhelming. But this could largely be attributed to the slowdown in the economy, not to mention volatility in global markets,” said Bharat Iyer, head of India equity research at JP Morgan.

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First Published: Aug 30 2019 | 1:02 AM IST

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