Nifty 50 extends seven-week slide as losses deepen
In short
The Nifty 50 has fallen for seven straight weeks and is down 2.3% this week. Market value has dropped by about $250 billion, and the index has fallen below its 200-day moving average on a weekly basis for the first time in six years.
This matters because investors are seeing a sharper selloff in Indian shares. Foreign investors are also pulling money out, but it is not yet clear when the slide will stop.
What the reporting says
The Nifty 50 on Tuesday extended a seven-week selloff and fell 2.3% this week, with Indian equities losing about $250 billion in market value. The index also broke below its 200-day moving average on a weekly basis for the first time in six years, while foreign investors kept pulling money from stocks amid higher global bond yields, rising oil prices and a weaker rupee. The next move is still uncertain.
Why it matters
The Nifty 50’s seven-week decline has wiped out about $250 billion in market value and pushed the index below its 200-day moving average on a weekly basis for the first time in six years. The reporting points to higher global bond yields, rising oil prices, a weaker rupee and foreign selling as pressure points for Indian equities. The immediate impact is weaker market sentiment, but the depth of any further correction is not stated.