MUMAI, India, Oct. 17 (UPI) -- India’s main stock market took a big hit after Wednesday’s opening on concerns of curbs on overseas funds flow but bounced back and closed with a small loss.
The Bombay Stock Exchange’s 30-share Sensex, which was down more than 1,700 points during intra-day trading, closed 336.04 points down to almost 18,716 after assurances from the government.
The index was off about 8 percent after opening on concerns over a proposal from the Securities and Exchange Board of India to tighten regulations relating to the purchases of Indian securities by foreign investors through participatory notes. PNs are issued by registered foreign institutional investors to allow foreign investors to participate in the market without having to register with Indian regulators.
The market recovered after assurances that the measures weren't aimed at foreign institutional investment but only at the PNs.
The Sensex had risen to dizzying heights in recent weeks, driven by a strong economy which has been attracting a massive flow of foreign funds.
