Sensex and Nifty drop for seventh day running; FPIs pull out $2 billion

Benchmark indices crash 5.5% as FPIs yank out $2 billion

Benchmark indices fell for a 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 56,410, down 188 points, or 0.33 per cent, over previous day’s close and