Indian shares fell for a seventh consecutive session on Thursday, their longest losing streak in one-and-a-half years, as bluechips such as State Bank of India and Infosys Ltd continued to be hit by foreign selling. The BSE index fell 1 percent to 25,979.60, while the broader NSE index closed 1.02 percent lower at 7,979.10.
SBI fell 2.17 percent while Infosys ended 1.7 percent lower. Indian shares, like their regional counterparts, have taken a hit due to the Federal Reserve's hawkish US interest rate forecast last week that led to foreign selling in emerging markets. In India, foreign institutional investors have sold a net $250.28 million in shares this month as of December 20.
Analysts said investors were booking profits due to a lack of a clear domestic triggers and persisting worries about the impact from a ban on higher value banknotes on the economy and corporate profits. "There is no clarity in the expectations of earnings routes for investors," said Saurabh Jain, assistant vice-president of research at SMC Global Securities. "Due to demonetization, earnings for the December quarter is expected to be tepid, and there are also expectations that the impact could be carried into the next fiscal year."
Blue chips continued to suffer, with financial stocks contributing nearly half the NSE's decline on Thursday. Axis Bank fell as much as 1.8 percent. Among other major decliners, IT stocks such as Infosys Ltd and Tata Consultancy Services were down more than 1 percent in thin trade.