Reuters
India’s benchmark BSE index fell for a fifth session in six yesterday to post its worst weekly loss in three years as oil explorers continued to slump after Brent crude prices slipped to below $63 a barrel.
The relentless slide in crude prices is fuelling concerns about global economic growth, and also dragged stocks in Europe lower, while limiting gains in Asian markets.
Caution also prevailed ahead of consumer inflation data due after the close of markets. Retail prices were expected to have risen 4.5% from a year earlier, the slowest monthly advance since the series was released in 2012.
Foreign investors have now sold $141.5mn worth of shares in Indian markets in the last three sessions, regulatory data showed.The NSE index has fallen 4.68% so far this month, putting it on track to snap two months of gains.
“In short-term, I expect markets to correct further by 2-3% as foreign institutional investors are likely to continue to sell as markets looks little overvalued at these levels,” said G Chokkalingam, founder of Equinomics, a research and fund advisory firm.
“The flows will also be impacted as the holiday season begins.
The benchmark BSE index ended 0.9% lower at 27,350.68 and was down 3.9% for the week to post its worst weekly performance since December 2011.
The broader NSE index closed down 0.8% at 8,224.10. For the week it lost 3.7%, recording its worst weekly performance since mid-July.
Rupee completes biggest weekly fall in 4 months
The rupee completed its biggest weekly decline since August on speculation an improving US economy will strengthen the dollar and damp demand for emerging-market assets, according to Bloomberg report.
US retail sales climbed the most in eight months in November, data showed on Thursday, adding to signs of a pickup in the world’s largest economy as the Federal Reserve considers its first interest-rate increase since 2006. The Bloomberg Dollar Spot Index, which tracks the greenback against 10 major currencies, rose 0.6% yesterday, the most in almost a week. Indian sovereign bonds capped a fourth weekly gain.
The rupee weakened 0.8% from December 5 to close at 62.30 a dollar in Mumbai. The currency touched 62.5038 earlier, the lowest level since February 6. Its weekly drop is the biggest since the five days ended August 1.
Three-month offshore non-deliverable forwards fell 0.7% from December 5 to 63.19 a dollar, data compiled by Bloomberg show.
