Sensex and Nifty drop for seventh day running
Published On: Friday, September 30, 2022 | By: Team KnowMyStock
Benchmark indices fell for the seventh day — their longest losing streak in seven months — ahead of a key rate-setting meeting of the Reserve Bank of India as the selloff in the global markets continued. The central bank is expected to raise the policy rate by 50 basis points (bps). The benchmark Sensex jumped over 500 points in opening trade following an overnight rebound in the US market. However, the optimism was short-lived as the US dollar’s ascent against global currencies continued. The 30-pack index closed at 56,410, down 188 points, or 0.33 percent, over the previous day’s close and 756 points below its day’s high. In the past seven trading sessions, the index is down 3,310 points, or 5.5 percent amid sustained selling by overseas funds, sparked by the decline in the rupee. Previously, the Sensex had declined for seven straight sessions in February.
In the past seven trading sessions, FPIs have withdrawn over $2 billion from the domestic markets. Their monthly buying tally has turned negative in September after two months of positive flows.
"Dollar has strengthened against a host of currencies, including the rupee. Bond yields are rising sharply. At the moment risk-adjusted return that investors expect from equity is not getting met. The aggressive statements by Fed regarding keeping higher rates for a longer time are stoking fears of a recession and triggering risk-off mode amongst investors.
India cannot be immune to global headwinds," said Siddhartha Khemka, head of retail research, Motilal Oswal
Financial Services.
Tags: BSE NSE Sensex Indian stock market
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