Foreign investors’ selling spree pulls market down

Dragged by selling across the counters, Indian benchmark equity indices, the BSE Sensex and NSE Nifty50, ended in red. The 30-share Sensex shed as much as 548.39 points, or 0.70 per cent, to settle at 77,311.80. Mirroring the Sensex, the NSE Nifty50 also ended lower by 178.35 points, or 0.76 per cent, at 23,381.60.

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Also, the fear index, India VIX(Volatility Index) , which gauges the volatility in the markets, ended higher by 5.55 points at 14.45.

Puneet Singhania, director, Master Trust Group said, “The recent development that the Trump administration is going to impose 25 per cent tariffs on all steel and aluminum imports could potentially disrupt the trade flows, causing oversupply in alternative markets and economies such as India, and potentially leading to a fall in international steel prices.”

“Further, the Chinese manufacturers facing overcapacity, are already supplying their excess steel production in India at very competitive prices,” he added. Foreign institutional investors are on selling spree. Since October, FIIs have been net sellers.