April was a month of rebound for the Indian markets after a heavy coronavirus led sell off that Indian markets witnessed in March. Probably, April was the best month on record in 10 years in 2020 with a rally of 14% on the Sensex.
And now as the trading session for May month has ended with May 29, 2020 session, Sensex was down almost 4% for the month after seeing a rally of 1800 points in the last trading days through May 29, 2020. And Nifty on the other hand was down by 2.8%.
Notably at the end of last week, Sensex was down by almost 10% but stellar rally towards the end of the month helped recouped previous losses for the month.
What led the drop in the headline indices in May?
In May primarily, the sell-off in banking stocks triggered losses for the headline indices with Bank Nifty crashing more than 20% at one point.
As per a BS Research report, in May month, FII flow became positive for the first month since January due to share sale of Airtel and HUL which brought in foreign funds to the tune of Rs. 13257 crore.