India benchmark shares log worst month since March as oil, global rate hikes spark outflows
INDA•India’s Nifty 50 fell 6.1% and the Sensex declined 5.8% in September, their steepest monthly drops since March. Foreign investors sold $2.7 billion of Indian shares during the month.
1. Benchmarks and outflows
Indian equity benchmarks recorded their steepest monthly drops since March as rising oil prices and global interest-rate hikes kept inflation concerns in focus. The Nifty 50 fell 6.1% to 22,620.45, and the Sensex lost 5.8% to 72,480.29; both declined for a second consecutive month. Foreign investors offloaded $2.7 billion of Indian shares in September, bringing year-to-date outflows to $26.8 billion.
2. Sectors and outlook
All 16 major sectors fell, led by information technology, which dropped 11.2%. Small-caps declined 3.4% and mid-caps fell 7.6%. Analysts expect limited downside risk after the losses, but said a recovery will be capped by persistent Middle East risks and hinge on earnings recovery.
