BENGALURU: Indian shares posted their longest daily losing run in nearly eight months on Wednesday as worries over the intensifying conflict in the Middle East and fluctuations in US bond yields hurt investor sentiment.
The NSE Nifty 50 index closed 0.83% lower at 19,122.15, while the S&P BSE Sensex fell 0.81% to 64,049.06. The blue-chips closed at their lowest since June 28.
Both the blue-chips have fallen for five straight sessions, losing more than 3% each over the period, in their longest losing streak since an eight-session slide that ended on Feb. 28.
Eleven of the 13 major sectoral indexes logged losses. High-weightage financials and information technology (IT) dropped 0.93% and 1.03%, respectively. Only 10 of the Nifty 50 stocks settled higher.
India’s Nifty has fallen 2.70% since the onset of the Israel-Hamas military conflict on Oct. 7.
“Further correction in Indian shares could be expected,” said Santosh Meena, head of research at Swastika Investmart.
“The slide, which is triggered by fluctuations in US bond yields and the Mideast crisis, has also caused a significant retreat in mid- and small-caps after a period of exuberance,” Meena added.
Analysts at HSBC and InCred Equities also expect the consolidation in domestic equities to continue.
Asian markets were muted, as the report of a likely default by China’s biggest private property developer Country Garden hurt sentiment.
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