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Indian Stocks Hit 32-Month Low, Erasing Rs 10 Lakh Crore
Indian shares fell sharply on Thursday, reaching their lowest level in about 32 months.
The Sensex and Nifty are two measures of how many major shares are doing.
Their falls meant investors lost more than Rs 10 lakh crore in market value that day.
Foreign investors had also been selling Indian securities.
The Reserve Bank of India raised the rate at which it lends to banks on Wednesday.
Higher borrowing costs can make people and businesses spend less.
Oil prices were also rising, while several other Asian markets fell.
A survey of fund managers showed concerns about Indian companies, economic growth and stock prices.
The Sensex fell more than 1,040 points to 71,500 on Thursday, while the Nifty 50 dropped 371 points to 22,200.
Investors lost more than Rs 10 lakh crore in value during the day, and the India VIX volatility index rose 10%.
Foreign investors sold $4.8 billion in securities over nine days, bringing reported net outflows for the year to a record $30.4 billion.
The Reserve Bank of India raised its repo rate by 25 basis points to 5.5% on Wednesday, its first increase in nearly four years.
Higher oil prices, global market declines and concerns about Indian stocks also weighed on sentiment; Brent crude traded at $104 a barrel.
- Who
- Indian stock investors, foreign investors and the Reserve Bank of India.
- What
- Indian share indexes fell to multi-month lows, with more than Rs 10 lakh crore in investor value lost during the day.
- Where
- India, with major Asian stock markets also trading lower.
- When
- Thursday; the Reserve Bank of India raised the repo rate on Wednesday.
- Why
- The article cites tighter monetary conditions, rising oil prices, foreign fund outflows and investor concerns about Indian stocks.
Key facts
- Sensex
- Fell more than 1,040 points to 71,500, a 1.4% decline.
- Nifty 50
- Fell 371 points to 22,200, an 18-month low.
- Investor losses
- More than Rs 10 lakh crore in value was lost during the day.
- Repo rate
- Raised by 25 basis points to 5.5% on Wednesday.
- Foreign investor sales
- $4.8 billion in securities over nine days; reported year-to-date net outflows reached $30.4 billion.
- Brent crude
- Rose 4.2% in a week and traded at $104 per barrel on Thursday.
- Fund manager survey
- 98 panellists managing $272 billion in assets responded between August 7 and August 13.
Sources
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