Cash Crunch Impact: Sensex Records Longest Losing Run In 21 Months

Since demonetisation the Sensex has fallen nearly 6% Indian markets have also taken a hit due to hawkish stance of US Fed Selling was broad-based with all the sectoral indices on BSE in the red

NDTV Profit Desk

22 Dec 2016, 08:37 PM IST

The Sensex had last recorded a seven-day losing streak in March 2015.

The Sensex fell 262 points today to end at 25,979 while the Nifty settled at 7,979, down 82 points. The Sensex has now fallen 2.6 per cent or over 700 points in the last seven sessions.
Analysts said investors were booking profits due to lack of clear domestic triggers and persisting worries about the impact from the ban on higher value banknotes on the economy and corporate profits.
The Sensex had last recorded a seven-day losing streak in March 2015.
Indian shares, like their emerging market counterparts, have taken a hit due to the Federal Reserve's hawkish US interest rate forecast last week that led to foreign selling in emerging markets.
In India, foreign institutional investors have sold a net $250 million in shares this month as of December 20.
"There is no clarity in the expectations of earnings for investors," said Saurabh Jain, assistant vice-president of research at SMC Global Securities. "Due to demonetisation, earnings for the December quarter is expected to be tepid, and there are also expectations that the impact could be carried into the next fiscal year."
Anil Manghnani of Modern Shares and Stock Brokers said demonetisation has taken its toll on markets, which is looking for announcements from the government on measure to support the economy. Since demonetisation was announced on November 8, the Sensex has fallen nearly 6 per cent. If the Nifty breaches 7900 levels, the selloff could accelerate, adds Mr Manghnani.
However, some analysts expect a pre-Budget rally in anticipation of policy announcement to prop up the economy. Market expert Ajay Bagga said there could be a pre-Budget rally in anticipation that the government may announce sops for the industry and the middle class.
The selling pressure was broad-based today with all the sectoral indices on the BSE finishing in the red. Banks and metal stocks were among the worst hit.