Indian Stocks Touch Multi-Month Lows Amid Persistent Foreign Selling
Indian stock indices slumped for the sixth consecutive day, reaching multi-month lows due to persistent foreign sell-offs and weak Q2 earnings. Sensex fell by 110.64 points; Nifty dropped by 26.35 points. Experts advise caution amid market turbulence caused by rising inflation and a weakened rupee.
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Indian benchmark stock indices slumped for the sixth straight session, hitting new multi-month lows. The Sensex concluded at 77,580.31 points, slipping 110.64 points, or 0.14 percent. Meanwhile, the Nifty ended at 23,532.70 points, shedding 26.35 points, or 0.11 percent. Sectoral indices showed a mixed bag, with gains recorded in Nifty bank, auto, and media sectors, while FMCG, pharma, and PSU banks ended in the red.
Amol Athawale of Kotak Securities advises short-term traders to exercise caution amidst the market's downward trajectory, citing risks of being caught at lower levels. The market's decline is attributed to factors such as weak Q2 earnings, persistent foreign fund outflows, and soaring domestic inflation rates both at retail and wholesale levels.
ICRA Analytics noted that the Indian equity market's decline continued due to relentless selling by foreign portfolio investors. The spike in October's domestic retail inflation above the Reserve Bank of India's upper tolerance level, coupled with the rupee's depreciation against the US dollar, further exacerbated market losses, according to their analysis.
The Indian stock markets will take a break tomorrow for Prakash Gurpurb Sri Guru Nanak Dev and resume trading on Monday. V K Vijayakumar of Geojit Financial Services indicated that market corrections typically include counter moves allowing for potential bounces back, which he suggests could occur at any moment.
Vijayakumar further emphasized uncertainty around the sustainability of foreign flows, and the timing for rebounds in earnings growth and GDP signals. Until clarity emerges, he advises investors to focus on quality stocks in sectors demonstrating consistent demand. (ANI)
(With inputs from agencies.)