Indian stocks tanked on Wednesday, as a severe bout of selling pressure engulfed the market, amid rising concerns about recent heavy selling by foreign investors and on worries about the impact of imminent interest rate hikes in the U.S.
Mounting geopolitical concerns and the rupee's decline to its lowest level in more than six months against the U.S. dollar and likelihood of more downside for the currency are also weighing on the market.
Reports saying that the Indian army conducted a surgical strike alongside Indo-Myanmar border also appear to be shaking investors' confidence.
According to data available from stock exchanges, foreign investors sold shares worth net $777 million so far in September 2017. In the previous month, the had sold shares worth net $2 billion.
The rupee's sustained weakness against the U.S. dollar, rising concerns over the spat between the U.S. and North Korea and possibility of rate hikes in the U.S. in the foreseeable future appear to be hurting sentiment of foreign fund houses. Also, with worries about Indian economic growth in recent quarters, post demonetization, appear to be prompting this set of investors to either largely stay away from the ring or indulge in some heavy selling at times.
The Sensex and the Nifty50 are extending their losses to a seventh successive session. At 31,159.87, the Sensex ended down 439.95 points or 1.39%. The Nifty50 of the National Stock Exchange ended down 135.75 points or 1.38% at 9735.75.
All the sectoral indices are down in negative territory. Pharmaceuticals, power and realty stocks are among the most hit. Automobile, bank, metal, FMCG, oil and media stocks are also mostly down with notable losses. Information technology, telecom nd consumer durables stocks are finding modest support.
The market breadth is very weak. On BSE, losers outscore gainers by almost 4 to 1.
