Explained: why the Nifty fell for eight straight weeks

The Nifty 50 has fallen for eight straight weeks, its longest losing streak in 25 years. Here is why Indian markets slid, and what could turn them around.
The biggest drag was foreign selling. Foreign investors sold Indian equities for six straight sessions, dumping shares worth 94.84 billion rupees on Thursday alone. Global funds have moved money to safer assets.
Crude oil hurt too. Brent has traded around 100 dollars a barrel, pushing up India’s import bill. Rising US bond yields made American assets more attractive than Indian stocks.
The rupee’s fall to near 96 per dollar added pressure, raising fears of imported inflation. Meanwhile, domestic investors kept buying, with local funds purchasing 100.42 billion rupees worth on Thursday.
A rebound may be near. Weak US jobs data cut expectations of another Federal Reserve rate hike. Oil prices eased on Monday as Middle East exports rose. Analysts say a real recovery needs foreign selling to slow and crude to cool further.
Leave a Reply