Share markets in India witnessed most of the selling pressure during closing hours and ended their trading session on a negative note. Sectoral indices ended on a negative note with stocks in the auto sector and telecom sector witnessing most of the selling pressure.
At the closing bell, the BSE Sensex stood lower by 345 points (down 1%) and the NSE Nifty closed down by 103 points (down 1%). The BSE Mid Cap index ended the day down 0.9%, while the BSE Small Cap index ended the day down 0.8%.
The rupee was trading at 72.97 against the US$.
Asian stock markets finished on a positive note. As of the most recent closing prices, the Hang Seng was up by 0.1% and the Shanghai Composite was up by 1.2%. The Nikkei 225 was up 0.1%.
Ankit Shah offers an interesting observation around the falling stock markets in India.
Here’s what he wrote in a recent edition of The 5 Minute WrapUp…
While the Sensex has shed most of its gains in 2018, it still doesn’t appear so bad in Indian rupee terms. But for foreign investors, the fall in the Sensex has been worse, because they’re also exposed the currency risk.
The below chart shows the difference between the performance of the Sensex and the Dollex 30 index (Sensex in US dollar terms).
Dollex-30 Is Down 10% in 2018
You can see how the trend between the Sensex and Dollex-30 diverged since February 2018.
The Dollex-30 index has declined 10% in 2018 so far.
No wonder that foreign investors have been dumping Indian stocks. Since April 2018, foreign investors have sold equities worth Rs 56,550 crores. What is worth noting is that Rs 27,623 crores worth of equities were sold in the month of October alone.
