The RBI had opened special swaps windows to attract deposits from non-resident Indians and allow oil-marketing companies to source dollars.
The 50-share Nifty scaled a high of 10,227.30 intra-day but succumbed to profit-booking to finish at 10,155.25
'In the overall global portfolio, India's weighting has come down in the past seven months.'
Experts say foreign investor sentiment was bolstered by the US Federal Reserve's decision to go slow with interest rate hikes and hopes of political stability.
Rate-sensitive sectors like banks, auto and realty witnessed strong buying demand in trades today
The broader NSE Nifty sank 252.55 points, or 2.14 per cent, to 11,558.60.
After outperforming the broader market and their public sector peers for the better part of the post-Lehman period, private sector banks - such as HDFC Bank, ICICI Bank, Axis Bank, and Kotak Mahindra Bank - are now underperforming. Last week, the Nifty Private Bank index was up just 6 per cent year-to-date in the calendar year 2021, against nearly 13 per cent rally in the Bank Nifty and a 15 per cent rise in the benchmark Nifty50. Public sector (PSU) banks, such as State bank of India, Bank of Baroda, and Punjab National Bank, are now rally leaders and outperforming the broader market. The Nifty PSU Bank index was up 42 per cent since the beginning of this calendar year. But on a longer term, the Nifty Private Bank index is up 101 per cent since March 2016, against a 118 per cent rally in the Bank Nifty and just 2 per cent rise in the Nifty PSU Bank index in the period.
Ukraine fears weighed on sentiment, with Russia rejecting a peace proposal amidst civil war-like situation in the former Soviet union republic.
Sensex under pressure as Yellen signals rate hike; banking stock slip.
US Federal Reserve Chairman Ben S Bernanke held talks with RBI Governor Duvvuri Subbarao in Mumbai.
Emerging economies should also be mindful of growth.
The comment was in response to a June 19 Reuters story citing sources with knowledge of the matter as saying that India planned to clear some oil payments to Iran through the United Arab Emirates central bank.
Top gainers in the Sensex pack included Tata Steel, Kotak Bank, NTPC, HDFC twins, PowerGrid and ONGC, rising up to 4.60 per cent.
The US Federal Reserve on Wednesday night hiked interest rates by 0.25%.
The report did not specify the impact the rate hike will have on India.
Moody's has a 'Baa3' rating for India, with a positive outlook.
Equity markets braved all odds this fiscal and rewarded investors with high returns as the benchmark Sensex surged more than 66 per cent despite COVID-led disruptions and concerns over its impact on the economy. Market analysts termed FY 2020-21 as a roller coaster ride for not only Indian markets but also for equity indices globally due to the pandemic. In an unprecedented come back, the 30-share BSE Sensex has jumped 19,540.01 points or 66.30 per cent so far this fiscal. This extraordinary rally holds significance as markets faced volatile trends this fiscal.
The 30-share Sensex dropped 68.16 points at 18,664.88 and the 50-share Nifty fell 23.15 points at 5,519.10 levels.
Strong dollar will impact financial system in India.
'Today, there is no easy money to be made after the run-up in equities.'
'It is going to be a tough balance for the RBI to manage economic stability and ensure smooth government borrowing.'
However, dollar's rise against other currencies overseas capped the gains
The markets are showing no signs of stability as the economic impact of the coronavirus outbreak is likely to be significant for many major economies.
The US Federal Reserve has announced to maintain its bond purchase tapering programme.
The RBI is expected to build reserves so the source of primary liquidity creation is backed by forex reserves.
Foreign institutional investors added $20.10 billion in equities while they pulled out $7.97 billion from the debt market, resulting in total net flows of $12.13 billion.
The BSE mid-cap and small-cap indices ended flat against Sensex's 0.4% up-move.
Samvat 2071: Sensex drops most in 4 years
ICICI Bank, HDFC Bank, IndusInd Bank down between 0.2%-1.4% each.
The 30-share Sensex lost 22 points to close at 27,090 and the 50-share Nifty gained 7 points to end at 8,121.
Stock market minnows put up a stellar show in 2021 giving returns of up to 60 per cent amid Dalal Street dream run and are likely to continue sailing northwards in the New Year too. Trumping pandemic-induced uncertainties, the Indian equity market posted stunning gains this year achieving several feats and smaller stocks benefited the most from the strong momentum. From reaching the momentous 50,000-mark in January to scaling 61,000-level in October, the BSE Sensex had an epic journey this year.
Crucially, the US central bank softened the blow by making its forward guidance even more dovish.
On speculative front as well, non-commercials have decreased bullish bets on COMEX silver futures and options to a three-month low.
The 30-share BSE Sensex shed 0.9% or 186 points at 20,536 while the 50-unit NSE Nifty was off 1% or 61 points at 6,091.
Macro-economic data from China and minutes of the US Federal Reserve's last meeting caused the turmoil as stocks tumbled around the globe.
The markets will also keenly eye the HSBC manufacturing and services data.
With a global selloff over concerns of the US Federal Reserve's bond-buying tapering impacting the currencies of several emerging markets, the rupee has been the worst performer since Thursday.
The Financial Stability and Development Council members include heads of regulatory bodies like RBI, Sebi and Insurance Regulatory Development Authority.
Second quarter earnings of companies, starting with the Infosys results, export-import numbers and industrial production data, could keep markets volatile in the week ahead.
At the outset, decide whether you want to be a trader or an investor, suggest Sarbajeet K Sen and Sanjay Kumar Singh.
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