Indian stocks fell for the fourth straight session on Monday, as foreign investors continued to pull money out of the market and worries over a weak monsoon and fresh West Asia tensions weighed on sentiment.
The Sensex dropped 508.40 points, or 0.68 per cent, to close at 74,267.34, while the Nifty 50 slipped 165.15 points, or 0.70 per cent, to 23,382.60.
Over the last four sessions, the benchmarks have now lost about 2.9 per cent and 2.7 per cent, respectively.
Selling was broad-based, with 14 of 16 major sectoral indices ending in the red. Small-caps and mid-caps fell 0.9 per cent and 1.5 per cent, extending the pressure beyond frontline stocks.
Financials, a favourite hunting ground for foreign portfolio investors, declined 1.4 per cent, while consumer goods and auto shares dropped 1.7 per cent and 2.3 per cent on fears that the weakest monsoon in 11 years could hurt crops, rural demand, and growth.
The mood has been soured by record overseas selling: foreign investors dumped about 2.22 billion dollars worth of shares on Friday alone, when MSCI’s May index reshuffle took effect.
The only bright spot was technology, with IT stocks gaining 2.7 per cent after strong earnings from US-based Snowflake lifted global cloud and software names.
Investors are now turning their attention to the Reserve Bank of India’s policy decision on Friday. The central bank is widely expected to hold rates, but economists see a risk of at least one hike later this year if oil stays near 90–100 dollars a barrel and capital flows remain weak.
