New Delhi, India (BBN)-The BSE benchmark Sensex closed at its lowest level in over six months on Thursday on the back of selling in banking, oil & gas and power stocks.
The 50-share Nifty fell below its crucial psychological level of 8,000 in trades today led by losses in blue-chip stocks like ICICI Bank, HDFC Bank, ONGC and HDFC, reports NDTV.
Sanjeev Bahsin, an independent market analyst, said, “Technically, people were thinking that 8,000 would be a level where they would go long but pessimism could last for some more days. Earlier, pharma and IT were leading the declines because they were over bought but today’s fall has come in because of weakness in banking stocks.”
The Indian equities have been facing the heat of selling pressure since quite some time now. Yesterday, the Sensex nosedived over 700 points to slip below its important psychological level of 27,000.
The selloff was triggered after the government decided to levy minimum alternate tax (MAT) on the gains made by the foreign institutional investors during the previous years in the Indian stock markets. This combined with poor earnings by the Indian companies and a global selloff in the bond markets is having a toll on the Indian markets.
The foreign institutional investors have been selling Indian shares since last 14 trading sessions and have sold shares worth Rs 13,419 crore since then. Yesterday alone, the FIIs sold shares worth Rs 1,699 crore.
No Subscription? You Are Missing Out!
Join the business leaders of Bangladesh who rely on BBN's original reporting and in-depth analysis on business scenario of the country. We send only one daily email. No Spam Guaranteed!