Domestic stock markets will see signs of continued foreign inflows in August, even as local and global markets closed lower on Friday.
US stocks fell as short sellers resurfaced and investors became more cautious after Federal Reserve officials beat the drum on raising interest rates. Treasury yields rose and the dollar rose.
The S&P 500 index extended its losses, heading for its biggest daily decline since June. The tech-heavy Nasdaq 100 underperformed major benchmarks, with growth-related stocks taking the hardest hit on Friday.
Wall Street’s fear meter, the Cboe Volatility Index, rose the most in more than two weeks, back above 20.
The Nifty 50 broke its longest winning streak in 21 months, even as it won for the fifth week in a row, helped by FMCG and energy stocks. The Sensex dropped more than 650 points to close at 59646.15. The meter broke a five-day winning streak.
Still, after making net buyers for the first time in 10 months in July, foreign investors continued to pounce on Indian equities. They have net invested Rs 44,500 crore in shares in August so far.