BENGALURU, Sept 28 (Reuters) equities ended around two-month lows with losses reported by banks, energy, and metal industries as concerns about a global recession dampened risk sentiment.
The S&P BSE Sensex (.BSESN) closed down 0.9% at 56,598.28, while the NSE Nifty 50 index (.NSEI) down 0.9% to 16,858.60. Both indices have seen their longest losing streak since mid-June after falling for a sixth straight session.
Worries that the world would enter a recession were heightened by rising borrowing prices and a deteriorating energy crisis, which sent global markets down to two-year lows on Wednesday.
According to Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services, the investment barrier for stocks has increased due to rising interest rates and bond yields.
Meanwhile, he claimed, pressure was being increased by the threat of a recession brought on by “extremely high” interest rates.
According to preliminary statistics made public by the National Stock Exchange, foreign institutional investors sold a net 28.24 billion Indian rupees ($345.63 million) worth of Indian stocks on Tuesday, while local investors bought 35.05 billion rupees worth of shares.
According to Joseph Thomas, head of research at Emkay Wealth Management, “Overseas investors would not be interested in coming back to the markets at this point in time unless the currency stabilises.”
“Over the next 2-3 quarters, we need to see the trajectory of U.S. interest rates from the current aggressive approach reduce. We also need to know the direction of the Indian monetary policy and some degree of currency stability.”
So far this year, the Nifty and Sensex are down approximately 3%.
Investors are waiting for the Reserve Bank of India’s monetary policy announcement on Friday.
Markets will take defensive positions before the result of the RBI policy, Khemka continued.
The bank index (.NSEBANK) fell 1.6%, the energy index (.NIFTYENR) dropped 1.6%, and the metals index (.NIFTYMET) fell 1.9%.
The Nifty 50 index’s top gainer was Asian Paints (ASPN.NS), up 2.9%, while the top loser was Hindalco (HALC.NS), down 3.4%.
$1 is equal to 81.7050 Indian rupees.
