Sensex, Nifty Slump Amid Global Selloff

BSE Sensex and Nifty slumped on Friday amid a global selloff and a sharp fall in the value of the rupee against the dollar. The Indian rupee fell over 3-month low of 61.14 against dollar, its lowest since April 25.

The dollar has also rallied against other global currencies after a report showed the US economy rebounded sharply in the second quarter. Measured against a basket of its peers, the dollar gained 2 per cent in July for its best monthly performance 1-1/2 years.

Market analyst Ambareesh Baliga said a correction was overdue in Indian stock markets and Nifty could fall to 7400 levels or even lower. Expectations from the new government and corporate results are very high but it will take time for improvement at the ground level, he added.

Further putting pressure on Indian markets, foreign investors sold Indian shares worth Rs 1,654 crore on Thursday, their biggest single-day selling since July 2.

Asian shares stumbled today after an overnight swoon on Wall Street while European markets were weak in early trade. US markets came under pressure on fears that the Federal Reserve could raise short-term interests faster than expected because of a rebound in growth during the spring.

Indian markets have been ignoring geo-political issues, Mr Baliga added.

The selling pressure was broad-based with all the sectoral indices on the BSE in the red. At 2:55 p.m., the Sensex was down 411 points at 25,483 while Nifty fell 118 points to 7,602.