The Sensex fell 1.44 percent to 71,593.24 and the Nifty 50 fell 1.64 percent to 22,231.8, with foreign investors extending a record year of outflows.
India's Sensex closed on Thursday at its lowest in 32 months as oil prices, bond yields and a weaker rupee added to inflation worries. The Nifty 50 fell 1.64 percent to 22,231.8, its lowest close in 18 months, and the Sensex shed 1.44 percent to 71,593.24, Reuters reported.
Foreign investors sold a net 469.9 billion rupees, about 4.86 billion dollars, over nine days, taking year-to-date outflows to a record 30.4 billion dollars. The drop followed a Reserve Bank of India increase in the repo rate by 25 basis points to 5.5 percent on Wednesday, with a signal of further rises.
Brent crude rose about 4 percent to over 104 dollars a barrel as Gulf shipping attacks and a US hurricane added to supply concerns, Reuters said. Market commentator Chokkalingam said equities face further pressure if oil keeps rising, and that monsoon deficits and low water storage add to price pressures.
Tata Consultancy Services fell 0.2 percent ahead of September-quarter results due after the close. The session opened the Indian earnings season under tighter rates and more expensive imported energy.
The figures are closing levels for Thursday's session, not a forecast of the next open.
People Sentiments Negative
- Chokkalingam said equities face further heat if oil rises and monsoon deficits add to price pressure.