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Indian stock markets corrected sharply on Thursday amid global cues and FPI selling, as today marks the last day of the SEBI deadline for unregistered foreign investors to disclose beneficial owners.
The Sensex index declined by over 1,000 points, or 1.23 per cent, to 81,190 points, while the Nifty 50 index lost 290 points, or 1.15 per cent, to 24,854 points at the time of filing this report. Experts noted several reasons for today's fall. Globally, markets are uncertain amid major economic data expected today, including US payroll data and Fed rate cut expectations. "Indian markets are falling due to global cues, especially the incoming US non-farm payroll data for August that will be released later this evening, India time. Domestically, political risk is rising with state elections coming up and with a major ruling coalition partner hobnobbing with opposition leaders" said Ajay Bagga, Banking and Market Expert. Additionally, today marks the deadline for foreign investors to disclose beneficial owners. According to SEBI, failure to comply will result in the disqualification of FPIs from investing in India, and they will need to wind up their investments. Experts cited this as a probable reason for the selloff. India's volatility index, India VIX, surged by 5.84 per cent to stand at 15.04 points. In broad market indices, the Nifty Midcap 50 index saw the largest decline, down 1.34 per cent, while the Nifty Next 50 and Nifty 100 both declined by more than 1 per cent. "The correction of 2 to 3 per cent is not a fall, as the markets are trading at an all-time high. The reason for this selling is the reports that non-registered FPIs will not be able to operate in the market, which is also creating pressure. The markets are also sensitive ahead of the Fed rate cuts; if the Fed announces a rate cut, the markets will rebound strongly," said Vijay Chopra, Stock Market Expert. Among sectoral indices, the highest pressure was on the Nifty PSU Bank index, which declined around 3 per cent, followed by Nifty Bank, down 1.35 per cent, and Nifty Oil & Gas, down 1.97 per cent. On the Nifty 50 list on NSE, only 9 stocks advanced, while 41 stocks declined at the time of filing this report. During the opening session on Friday, the Nifty 50 index opened with a dip of 52 points, or 0.2 per cent, at 25,093.35 points, while the BSE Sensex index declined by 0.04 per cent, or 30 points, to open at 82,171.64 points. (ANI)
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