Investors globally pulled out more than $3 billion from equity funds focused on Emerging markets including India in a week amid concerns over the US Federal Reserve's plan of curtailing its stimulus drive starting later this year.
The 30-share Sensex ended down 249 points or 0.94% at 26,304 levels.
The US Federal Reserve has retained the benchmark interest rate at near-zero level and struck an upbeat note saying that the American economy has continued to strengthen in recent months.
Yes Bank was the top gainer in the Sensex pack, soaring 24.03 per cent, after the lender said it had received a binding offer for $ 1.2 billion funding from an overseas investor. SBI, Infosys, Tata Motors, Bharti Airtel, HCL Tech and HDFC too rallied up to 7.69 per cent.
Financials were among the top losers along with Sun Pharma and index heavyweight Reliance Industries
Stock markets opening with losses too put pressure on the domestic unit.
Improvements in the labour market has triggered this sentiment.
With improvement in the housing and manufacturing sectors, the recession-hit US economy has been witnessing signs of stabilisation in recent months, the US Federal Reserve has said.
'If one believes that the Indian stock market will go up 70 per cent every year for the next 10 years, I wish you good luck!'
This year, the combined net profit of 24 index companies, which have declared their June-20 numbers, has declined by 37 per cent year on year, while their revenues, including other income, is down by 21 per cent YoY so far.
NITI is trying to partner with other knowledge institutions.
Indian bonds remained volatile over the past week on uncertainties over the maiden offshore sovereign bonds issuance, according to a report by DBS Group Research.
S&P Global Ratings on Wednesday lowered India's economic growth forecast to 5.2 per cent for 2020, saying the global economy is entering a recession amid the coronavirus pandemic. The agency had earlier projected a growth rate of 5.7 per cent during the 2020 calendar.
The recession-hit American economy is slowly witnessing signs of stabilisation, with significant reduction in the pace of GDP contraction and job losses. Going by the latest Beige Book from the US Federal Reserve, economic activity in most of the districts in the country have either improved or stabilised.
The local currency had gained 7 paise to close at 66.57 in Monday's trade.
The broader NSE Nifty ended 57 points, or 0.49 per cent, lower at 11,498.90 in its fourth straight day of losses.
Shares of Yes Bank tanked over 15.52 per cent. Other losers in the Sensex pack included Tata Steel, Maruti, SBI, RIL, Tech Mahindra, ONGC, Vedanta, Bajaj Finance, Hero MotoCorp and TCS, falling up to 3.66 per cent.
The 30-share Sensex ended down 563 points at 25,202.
The US Federal Reserve has earned a whopping $14 billion profit on loan programmes made in the last two years, says a media report.
Most Asian currency and equity markets too suffered steep losses due to US rate hike fears.
'I would recommend two parts to fiscal support. One, support the lower end of the society by direct intervention through ways such as direct benefit cash transfer. Second, give fiscal support to the stressed sectors in line with the Rs 3-lakh crore (Rs 3 trillion) emergency credit line guarantee norms'
Rate-sensitive sectors like banks, auto and realty witnessed strong buying demand in trades today
India Inc on Monday said that the Interim Budget was 'absolutely' up to the expectations.
All policy planners want low interest rate, says Jaitley
Emerging markets like India and China are witnessing a remarkable transformation, despite a slowdown in economic growth, lifting millions of people out of poverty, Federal Reserve Chairman Ben Bernanke has said.
Sectorally, BSE metal, basic materials, energy, realty, power, oil and gas, finance, FMCG, bankex and telecom indices fell up to 1.71 per cent.
You also avoid capital gains tax during redemption in case the gold price is higher, making them tax efficient.
'Invest a part of your portfolio in a global currency that can't be printed, or meddled with -- gold,' suggests Chirag Mehta.
The sale will be quicker if an Indian private bank buys it; it will take longer for regulatory clearances if a foreign bank or an NBFC buys it, points out Tamal Bandyopadhyay.
Not just India, but Asian peers such as Indonesia, South Korea, Thailand, Taiwan and The Philippines have seen sharp FPI outflows this year
A higher opening in the domestic equity market influenced the rupee uptrend
Infosys was the top gainer in the Sensex pack, rising 2.36 per cent, followed by HDFC Bank up 1.39 per cent.
In the Sensex pack, Vedanta took the biggest hit (5.55 per cent), followed by Tata Motors, SBI, Yes Bank, Bharti Airtel and Infosys, which lost up to 4.50 per cent.
Sensex under pressure as Yellen signals rate hike; banking stock slip.
The Nifty has gained 2.6% so far this week, while the Sensex has climbed 2.85%
In the Sensex pack, Tata Motors was the biggest loser, shedding 3.29 per cent, followed by ICICI Bank, IndusInd Bank, Infosys, HCL Tech, Axis Bank, TCS, HUL, Asian Paints, Sun Pharma, SBI, Tata Steel and NTPC, which dropped up to 3.23 per cent.
In the past four months, $7.5 billion has flowed back into domestic stocks, helping the benchmark indices bounce back more than 40 per cent from their 2020 lows.
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.
The broader NSE Nifty dropped by 48.65 points, or 0.45 per cent to 10,808.05 after shuttling between 10,773.55 and 10,833.70.
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