The Sensex and Nifty fell for a seventh consecutive session on Thursday, their longest losing streak in one-and-a-half years, in the absence of any major triggers and a likely hit to quarterly earnings from demonetisation.
Heavy FII outflows ahead of key US and ECB economic data later today, coupled with muted sentiment ahead of holidays, dampened the trading sentiment.
The benchmark BSE index Sensex nosedived 262.78 points to a nearly one-month low of 25,979.60 and the NSE index Nifty fell 82.20 points to 7,979.10.
Among BSE sectoral indices, metal index fell the most by 2.78 per cent, followed by infrastructure 2.06 per cent, consumer durables 1.9 per cent and power 1.67 per cent.
Top five Sensex losers were Adani Ports (-3.56%), Tata Steel (-3.09%), ONGC (-3.03%), Bharti Airtel (-2.98%) and SBI (-2.12%), while the only four gainers were ITC (+0.51%), Asian Paints (+0.38%), Wipro (+0.26%), and Tata Motors (+0.19%).
FII selling
Indian shares, like their regional counterparts, have taken a hit due to the Federal Reserve's hawkish US interest rate forecast last week that led to foreign selling in emerging markets.
In India, foreign institutional investors have sold a net $250.28 million in shares this month as of December 20.
Analysts said investors were booking profits due to a lack of a clear domestic triggers and persisting worries about the impact from a ban on higher value banknotes on the economy and corporate profits.
“There is no clarity in the expectations of earnings routes for investors,” said Saurabh Jain, assistant vice-president of research at SMC Global Securities.
According to the Japanese financial services major Nomura, damage to India’s economic growth is likely to be bigger than RBI’s estimates, as there could be a sharper slowdown in the near term and cash shortage is likely to extend to the first quarter of the next year.
Meanwhile, investments in domestic capital markets through participatory notes (P-Notes) plunged to its lowest level in nearly three years to Rs. 1.79 lakh crore in end-November.
“Due to demonetisation, earnings for the December quarter is expected to be tepid, and there are also expectations that the impact could be carried into the next fiscal year.”
Heavy FII outflows ahead of key US and ECB economic data later today, coupled with muted sentiment ahead of holidays, dampened the trading sentiment.
The benchmark BSE index Sensex nosedived 262.78 points to a nearly one-month low of 25,979.60 and the NSE index Nifty fell 82.20 points to 7,979.10.
Among BSE sectoral indices, metal index fell the most by 2.78 per cent, followed by infrastructure 2.06 per cent, consumer durables 1.9 per cent and power 1.67 per cent.
Top five Sensex losers were Adani Ports (-3.56%), Tata Steel (-3.09%), ONGC (-3.03%), Bharti Airtel (-2.98%) and SBI (-2.12%), while the only four gainers were ITC (+0.51%), Asian Paints (+0.38%), Wipro (+0.26%), and Tata Motors (+0.19%).
FII selling
Indian shares, like their regional counterparts, have taken a hit due to the Federal Reserve's hawkish US interest rate forecast last week that led to foreign selling in emerging markets.
In India, foreign institutional investors have sold a net $250.28 million in shares this month as of December 20.
Analysts said investors were booking profits due to a lack of a clear domestic triggers and persisting worries about the impact from a ban on higher value banknotes on the economy and corporate profits.
“There is no clarity in the expectations of earnings routes for investors,” said Saurabh Jain, assistant vice-president of research at SMC Global Securities.
According to the Japanese financial services major Nomura, damage to India’s economic growth is likely to be bigger than RBI’s estimates, as there could be a sharper slowdown in the near term and cash shortage is likely to extend to the first quarter of the next year.
Meanwhile, investments in domestic capital markets through participatory notes (P-Notes) plunged to its lowest level in nearly three years to Rs. 1.79 lakh crore in end-November.
“Due to demonetisation, earnings for the December quarter is expected to be tepid, and there are also expectations that the impact could be carried into the next fiscal year.”
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