1 hr ago
Indian Stocks Fall as Foreign Selling and Oil Pressure Mount
Indian share prices fell sharply during the session.
The Sensex lost about 900 points, and the Nifty 50 moved below 22,400.
Foreign investors sold a large amount of Indian shares.
Indian institutions bought shares, but their purchases did not fully offset the foreign selling.
Higher US bond yields made investments in the United States more attractive.
Oil prices were also high and changing quickly, which can raise India’s import costs.
Automobile, metal, realty, and consumer goods companies saw major declines.
The rupee weakened past 96 per US dollar, adding to investor concerns.
The Sensex fell about 900 points and the Nifty 50 dropped more than 230 points, moving below 22,400 during the reported session.
Foreign investors sold more than Rs 10,148 crore on September 30, while domestic institutions bought about Rs 11,271 crore.
The US 10-year bond yield reached 5.3%, encouraging foreign investors to favor dollar-denominated assets over emerging-market equities.
Brent crude prices remained volatile, with one report citing prices near $98 and another recording a rise to $100.20 a barrel.
Automobile stocks led sectoral losses, while the rupee weakened past 96 per US dollar and India VIX rose sharply.
- Who
- Indian equity investors, foreign portfolio investors, domestic institutional investors, and companies in sectors including automobiles, metals, realty, and consumer goods.
- What
- Indian benchmark stock indices fell sharply, with the Sensex declining about 900 points and the Nifty 50 falling below 22,400.
- Where
- Indian stock exchanges and markets.
- When
- The reports describe the sell-off as occurring on October 1, following heavy foreign selling on September 30; the second report also refers to Wednesday and Thursday trading.
- Why
- Persistent foreign selling, elevated US bond yields, volatile and higher crude oil prices, rupee weakness, global tensions, and broad-based sectoral selling pressured equities.
Short-Term Market Weakness
Persistent Macro Pressure
Outlook for recovery
Short-Term Market Weakness
V K Vijayakumar said the weakness could be a short-term phase and conditions may improve if crude oil prices decline.
Persistent Macro Pressure
Ravi Singh and Hariselvan Radhakrishnan said continued foreign selling, high bond yields, crude prices, and geopolitical risks could keep the market under pressure and limit a broad recovery.
Foreign investor activity
Short-Term Market Weakness
Domestic institutional buying continued to support the market, and foreign investors were also reported to be investing through primary markets while selling on exchanges.
Persistent Macro Pressure
Foreign investors remained net sellers through exchanges, with the selling weighing on liquidity, the rupee, and large-cap stocks.
Key facts
- Sensex move
- Fell around 900 points intraday and slipped below 71,700.
- Nifty 50 move
- Dropped more than 230 points, or over 1%, and moved below 22,400.
- Foreign selling
- Foreign investors sold more than Rs 10,148 crore on September 30; September selling was reported at about Rs 51,999 crore in one account.
- Domestic buying
- Domestic institutional investors bought roughly Rs 11,271-11,272 crore on September 30.
- US bond yield
- The US 10-year bond yield was reported at 5.3%.
- Crude oil
- Brent was reported near $98 a barrel in one account and reached $100.20 in another.
- Rupee and volatility
- The rupee touched 96.19 per US dollar, while India VIX rose between 10.21% and more than 12% in the reports.
Quotes
Dr. V K Vijayakumar
Chief Investment Strategist at Geojit Investments
“With the US 10-year bond yield rising further to 5.3 per cent, FIIs may continue to sell. An apparent contradiction in the FII activity is that even while selling through the exchanges, they have been consistently investing through the primary market and also buying expensive mid-and small-caps.”
businesstoday.in
“The sustained FII selling became intense during the last two trading days when the FIIs sold equity for a total of Rs 20128 crores.”
financialexpress.com
Ravi Singh
Chief Research Officer at Master Capital Services
“Indian equity markets remain under pressure, with the benchmarks heading towards their eighth consecutive weekly decline, amid persistent foreign investor selling, elevated global bond yields and ongoing West Asia tensions. Concerns over potential disruptions to energy supplies through the Strait of Hormuz have kept crude oil prices elevated, adding to inflation and margin pressures.”
businesstoday.in
Sources
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