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The benchmark BSE Sensex dropped for a sixth session on Tuesday to record its longest losing run in four months, as fears of lowering India's weightage on the MSCI index spooked the sentiment.
The 30-share Sensex closed down 41.84 points, or 0.16 per cent, at 26,481.25. With today's drop, the Sensex has plunged around 1,370 points, or 4.91 per cent, in the past six sessions. The market is on a downward spiral since last Tuesday when Reserve Bank had cut repo rate by 25 bps, despite flagging concerns over economic recovery. On the same day, the Met department had forecast monsoon to be deficient this year, triggering drought fears. Falling for a seventh straight session, the broad-based National Stock Exchange’s Nifty fell 21.75 points, or 0.27 per cent, to 8,022.40. "Markets continue its southward journey in line with the foreign portfolio investor sell off. Fears of lowering of weightage of India on the MSCI index also spooked the sentiment," said Gaurav Jain, Director of Hem Securities. Shares of realty, health care, IT and auto sectors were the major losers of the day.
Falling for the seventh straight day, the broad-based NSE Nifty fell by 21.75 points or 0.27 per cent at 8,022.40.
In volatile movements, Sensex shuttled between 26,438.32 and 26,604.65 during the day and finally ended 41.84 points or 0.16 per cent lower at 26,481.25.
This is the fresh lowest closing in nearly eight months.
Foreign investors are cautious in anticipation of a rate hike by the US Fed and the inclusion of Chinese A shares in the MSCI emerging markets index, which could see foreign investors making a run for Chinese markets, traders said.
"At present there is no positive trigger, most of the news flows from international markets and from the domestic front also are not supporting the market," said Alex Mathews, Head Research of Geojit BNP Paribas Financial Services.
With a slump of up to 3.35 per cent, Cipla was the top loser among Sensex and Nifty stocks.
Bucking the trend, shares of Vedanta topped the gainers by climbing 3.11 per cent amid speculations of Cairn India merging with itself.
Shares of Nestle India, after remaining under pressure for the four straight sessions, emerged surprised winner today trading largely on the back of value-buying and climbed 7.47 per cent to close at Rs 5,953.80.
