Benchmark Sensex and Nifty slid for the eighth straight day to close at four-month lows on Tuesday as growing worries over interest rate hikes to stem inflation and FII selling unnerved investors.
Mixed global cues, selling in index heavyweights and caution by investors ahead of the release of key macroeconomic data waylaid the key indices to their longest losing run in more than three-and-a-half years. Investor wealth eroded by `10.58 lakh crore in the eight-day decline.
Sensex and Nifty, previously, had fallen for a record nine days on the trot in May 2019.
Paring its early gains, the BSE Sensex declined by 326.23 points or 0.55 per cent to settle at a four-month low of 58,962.12. The barometer opened higher and later touched a high of 59,483.72 in line with gains in Asian markets.
However, European stocks opened lower and US futures also declined amid a rise in bond yields which pulled down the 30-share index around 688 points to touch a low of 58,795.97.
The NSE Nifty also retreated from the day’s highs to settle at a more than four-month low of 17,303.95, showing a loss of 88.75 points or 0.51 per cent. As many as 33 of Nifty stocks declined.
From the Sensex pack, Reliance Industries fell the most by 2 per cent. Tata Steel, Bajaj Finserv, ITC, NTPC, Bharti Airtel, Tech Mahindra, Titan, Axis Bank and Bajaj Finance were among the other major laggards.
Asian Paints, Mahindra & Mahindra, Power Grid, UltraTech Cement, Tata Motors and HDFC were the major gainers.
“Global investors’ interest in the equity market is weakening due to the slowdown in the economy, led by high inflation and contractionary monetary policy. Inflows are being diverted to safe assets, and corporate earnings growth is dropping, affecting the performance of the stock market and demanding downgrade in valuation.