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Sensex Sinks 1,045 Points as Indian Stocks Face Heavy Selling
Indian stocks fell sharply on Thursday.
The Sensex lost 1,045 points, and the Nifty lost 371 points.
The report says the Nifty ended at its lowest close in 18 months.
Investors were concerned after the Reserve Bank of India raised interest rates and signalled it could keep tightening policy.
Oil prices also rose, making imports more costly for India.
Foreign investors had been selling Indian shares.
The rupee was also weak against the US dollar.
Together, these pressures led to a broad sell-off across several sectors.
The Sensex fell 1,045 points and the Nifty dropped 371 points on Thursday.
The Nifty closed at its lowest level in 18 months, according to the report.
More than Rs 10 lakh crore in market capitalisation was erased during the sell-off.
Investors reacted to the RBI’s shift to calibrated tightening, higher crude prices and foreign fund outflows.
Brent crude rose to around $104.09 a barrel, while the rupee traded near 96.76 per US dollar.
- Who
- Indian equity investors, with foreign institutional investors among those selling shares.
- What
- The Sensex fell 1,045 points and the Nifty fell 371 points; more than Rs 10 lakh crore in market capitalisation was erased.
- Where
- Indian equity markets.
- When
- Thursday; the report says the fall came a day after the RBI’s policy decision.
- Why
- Investors reacted to the RBI’s tighter policy stance, rising crude oil prices and continued foreign fund outflows.
Market concerns
Policy rationale
RBI rate decision and policy stance
Market concerns
Investors worried that the shift to calibrated tightening could mean further monetary tightening if inflation pressures persist, weighing on equity valuations and borrowing costs.
Policy rationale
The RBI raised the repo rate by 25 basis points and shifted its stance; the article says the rate increase was largely expected.
Key facts
- Sensex decline
- 1,045 points
- Nifty decline
- 371 points
- Market capitalisation erased
- More than Rs 10 lakh crore
- RBI repo rate
- Raised by 25 basis points to 5.50 per cent
- RBI policy stance
- Changed from “neutral” to “calibrated tightening”
- Brent crude
- Around $104.09 a barrel, up nearly 4 per cent
- Rupee
- Around 96.76 against the US dollar
- FII cash-market sales
- Rs 6,121.37 crore on Wednesday
Sources
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