Markets turned volatile due to spread of Coronavirus globally – Markets corrected sharply on the day of the Union Budget as markets are expecting a bigger stimulus by the Government. However post the initial disappointment markets recovered most of the losses as it realized that the budget did try and provide stimulus to the economy. Sentiments were positive in the first half of the month despite a sharp rise in Novel Coronavirus cases in China as expectations were that it would be contained and will not become a global pandemic. However the positive sentiments turned negative globally in the last week of February as the Coronavirs spread beyond mainland China and there was a sharp jump in cases in South Korea, Iran and Italy. As a result FPI flows slowed down sharply to Rs.1819 cr. in February 2020 as compared to Rs.12,123cr in January 2020.
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