Mumbai, Indian (BBN) – The benchmark BSE index Sensex nosedived 262.78 points to end at 25,979.60 and the NSE index Nifty fell 82.20 points to 7,979.10 on sustained capital outflows by foreign funds and heavy selling by retail investors amid a weak trend overseas.
Heavy FII outflows ahead of key US and ECB economic data later today, coupled with mute sentiment ahead of holidays, dampened the trading sentiment, reports The Hindu Business Line.
Domestic sentiment was also hit as the country’s cash crunch continued to weigh on corporate earnings expectations for the December quarter.
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 NTPC (-2.2%), while the only five gainers were ITC (+0.53%), Asian Paints (+0.38%), Wipro (+0.26%), Tata Motors (+0.19%) and Cipla (+0.02%).
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.
“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.”