Mumbai: The benchmark BSE Sensex dropped for the sixth day Tuesday to record its longest losing run in four months as fears of lowering India's weightage on the MSCI index spooked the sentiment.
With today's 41.84 points drop, the 30-share barometer has plunged around 1,370 points, or 4.91 percent, in six days.
The market is on a downward spiral since last Tuesday when Reserve Bank had cut repo rate by 25 bps, despite flagging concerns over economic recovery.
On the same day, the Met department had forecast monsoon to be deficient this year, triggering drought fears.
"Markets continue its southward journey in line with the foreign portfolio investor sell off. Fears of lowering of weightage of India on the MSCI index also spooked the sentiment," said Gaurav Jain, Director of Hem Securities.
Shares of realty, healthcare, IT and auto sectors were the major losers of the day.
Falling for the seventh straight day, the broad-based NSE Nifty fell by 21.75 points or 0.27 percent at 8,022.40.
In volatile movements, Sensex shuttled between 26,438.32 and 26,604.65 during the day and finally ended 41.84 points or 0.16 percent lower at 26,481.25.
This is the fresh lowest closing in nearly eight months.
Foreign investors are cautious in anticipation of a rate hike by the US Fed and the inclusion of Chinese A shares in the MSCI emerging markets index, which could see foreign investors making a run for Chinese markets, traders said.
"At present there is no positive trigger, most of the news flows from international markets and from the domestic front also are not supporting the market," said Alex Mathews, Head Research of Geojit BNP Paribas Financial Services.
With a slump of up to 3.35 percent, Cipla was the top loser among Sensex and Nifty stocks.
Bucking the trend, shares of Vedanta topped the gainers by climbing 3.11 percent amid speculations of Cairn India merging with itself.
Shares of Nestle India, after remaining under pressure for the four straight sessions, emerged surprised winner today trading largely on the back of value-buying and climbed 7.47 percent to close at Rs 5,953.80.
Asian stocks ended lower on worries about Greece and on expectations that the US Fed will start raising interest rates in September. Key indices in Singapore, China, Hong Kong, Japan, South Korea and Taiwan dropped in the range 0.06 to 1.88 percent.
European shares were also trading lower in their late afternoon trade as indices in France, Germany and the UK fell between 0.43 and 1.37 percent.
Jignesh Chaudhary, Head Of Research at Veracity Broking Services said: "Blue-chips continued to slip on ongoing worries about weaker-than-average monsoon which has also dented the sentiments of investors."
Among 30-share Sensex, 18 scrips ended lower.
Major losers were Cipla (3.35 percent), Dr Reddy's (2.34 percent), Sun Pharma (2.05 percent), Wipro (1.76 percent), Bajaj Auto (1.60 percent), ONGC (1.47 percent) and ITC (1.00 percent).
However, Vedanta was the biggest gainer at 3.11 percent, followed by Hindalco 1.57 percent, ICICI bank 1.36 percent, GAIL 1.30 percent, Tata Motors 1.06 percent, Tata Power 1.05 percent and SBI 1.00 percent.
Among sectoral indices, realty fell by 1.54 percent, Healthcare 1.41 percent and auto 0.73 percent.
The market breadth remained negative as 1,577 stocks ended lower, 1,057 finished higher and 114 ruled steady.
The total turnover rose to Rs 2,225.89 crore from Rs 1,873.55 crore yesterday.
