Benchmark Sensex buckled under selling pressure for the third straight session Friday, capping off its worst month in over two-and-half years, as investors clamoured for the exit amid valuation and macro stability concerns.
The 30-share BSE index slipped 97.03 points in see-saw trade to close at 36,227.14, while the NSE Nifty dropped 47.10 points to 10,930.45.
The Sensex has lost a whopping 2,417.93 points, or 6.26 per cent, in September — its worst monthly show since February 2016.
Sentiment remained weak on the back of a weak rupee, high crude oil prices and liquidity concerns, while investors were also reluctant to make fresh bets ahead of RBI policy meeting next week, brokers said.
Selling took hold at the start of October futures and options (F&O) series in the derivatives segment.
Both the key indices recorded their fourth straight weekly fall. The Sensex lost 614.46 points, or 1.67 per cent and the Nifty dropped 212.65 points, or 1.91 per cent, this week.
Meanwhile, domestic institutional investors (DIIs) sold shares worth a net Rs 186.69 crore, while foreign portfolio investors (FPIs) bought shares worth Rs 552.44 crore Thursday, according to provisional data.
“Factors like heightened volatility of the money market, INR depreciation, increased bond yield and selling by FIIs in the emerging market triggered cautiousness in the market.
“Mid and small-cap continued to underperform while short covering in banking stocks helped Bank Nifty to close on a positive note.
“Investors are yet to gain confidence to start bottom fishing due to lack of liquidity, margin funding and short selling in the market,” said Vinod Nair, Head of Research, Geojit Financial Services.
Selloff in the NBFC space continued unabated, with PNB Housing Finance losing 4.46 per cent, Indiabulls Housing Finance 8.91 per cent and Dewan Housing Finance 5.08 per cent.