The benchmark BSE Sensex dipped below the key 26,000-mark by falling over 250 points Thursday, extending losses on sustained capital outflows by foreign funds and heavy selling by retail investors amid a weak trend overseas.
The Sensex drifted further from early losses by 196.26 points, while the broader Nifty slid below the crucial 8,000-level in late morning deals in a flurry of stocks sale.
The Sensex fell for the sixth day Wednesday, this time about 66 points, to end at 26,242, dragged down by major IT stocks such as Infosys and TCS amid mixed global cues.
Showing early signs of recovery after a five-day losing streak, the benchmark BSE Sensex rebounded over 86 points in early trade today on fresh round of value buying by investors amid positive cues from other Asian markets.
Market played into the hands of bears for the fifth day today as the Sensex ended at fresh two-weak low of 26,308 and the Nifty slipped below the key 8,100-mark, still cautious about how demonetisation will pan out.
Helped by growing interest from retail investors and aggressive buying of stocks, mutual fund industry grew at a rapid pace in 2016 with addition of almost Rs 4 lakh crore, or 28 percent, to its asset base and is looking to cross Rs 20-trillion mark in the new year.
The 50-issue NSE Nifty tumbled 35.10 points, or 0.43 percent, to close 8,104.35 after cracking the key 8,100-mark and touching a low of 8,094.85.
Falling for the fourth straight session, the benchmark BSE Sensex surrendered another 81 points to quote at 26,408.74 in early trade today on sustained selling by investors and funds amid weak Asian cues.
Due to continuous pressure on rupee against dollar, prospects for cut in the policy rates by the RBI mabe be adversely affected.
Over Rs 19,500 crore have been pulled out from capital market this month so far by the foreign investors amid policy rate hike by the US Federal Reserve and increases oil prices.
The Nifty 50 index during the week fell 122.30 points, or 1.48 percent, to finish at 8,139.45 after shuttling between 8,230.65 and 8,121.95.
In 2016 more than twelve companies have raised over Rs 26,000 crore through IPOs in 2016. The mop-up is more than previous year and makes it the best one for public offers since 2010.
India is "very well cushioned" to absorb the impact of the US Federal rate hike and the currency market will stabilise after witnessing the initial ripples, the Finance Ministry said Thursday.
Reacting to US Federal Reserve rate hike on Wednesday, Sensex and Nifty opened on highly lower note on Thursday.
The rupee on Wednesday staged a smart comeback after two straight days of losses and ended 11 paise higher at 67.43 against the US dollar on positive sentiment triggered by lower inflation and fresh selling of the American currency by exporters.
The Sensex opened higher at 26,707.91 and hovered in a range of 26,736.34 and 26,547.05 before ending at 26,682.45, down 94.98 points, or 0.36 percent.
The rupee weakened further Tuesday and closed 12 paise lower at 67.54 against the US dollar on steady demand for the greenback from importers and corporates.
At the close, Nifty retook the key 8,200-mark, driven by gains in RIL and ONGC stocks.
The Sensex showed its unpredictable side again as it reversed two days of gains and dived about 232 points to close at 26,515 on Monday, pulled down by dismal factory output data and higher oil prices amid mixed Asian indicators.
Axis Bank on Monday strongly denied a report in the regional daily that authorities are likely to scrap its licence in the wake of its involvement in a multi-crore black-money scam.