The benchmark BSE Sensex tanked 440 points and hit three-month low of 31,159.81 on Wednesday, amid board selling by investors, depreciation of Indian Rupee and the report of the Indian Army's attack on the hideouts in Nagaland along the India-Myanmar border.
With Wednesday's trade, the Indian equity market fell for the seventh straight session, with the Sensex losing 1,270 points, or 3.91 percent during the period.
The broader NSE Nifty cracked below the key 9,750-mark and settled down 135.75 points, or 1.38 percent, at 9,735.75, lowest closing since 11 August.
In last eight sessions, investors pulled out a total of Rs 6.18 lakh crore. After Wednesday's market close, BSE-listed companies' market capitalisation stood at Rs 130,68,465 crore which was at Rs 136,76,465 lakh crore on September 18. On Wednesday alone, Rs 1.6-lakh crore in market value was wiped out from the domestic stocks.
The corrections have been triggered by a series of factors such as GST impact on domestic market, subdued consumer spending, weak global cues, continued FPI outflows, muted growth forecast and growing global uncertainties.
"Clearly both the initiatives (GST and demonetisation) had a more severe impact than what we have imagined. The negative impact is more in wholesale businesses in rural areas along with small and medium-sized industries. And, this is worrying," Harsh Mariwala chairman of Marico told BloombergQuint.
Moreover, there are a slew of concerns weighing on the market—the delays in earnings growth, Rs 50,000 crore stimulus may trouble fiscal deficit target for the year, the surge in crude oil prices denting rate cut hopes, reported ET.
Weakening of the Rupee, the domestic currency has fallen by 99 paise to the day's low of 65.78 against the US Dollar on Wednesday. The domestic currency was at the 64 level at the beginning of this month, the business daily reported.
Foreign Institutional Investors (FIIs) have been net sellers form the past two months. As on September 25, they pulled Rs 4,511 crore out of the Indian equity market and in August they pulled out a whopping Rs 12,770 crore, according to NSDL data.
