Foreign portfolio investors remained a key source of pressure, selling equities worth Rs 10,148.41 crore on Wednesday. September saw heavy FPI outflows after buying in July and August, while the year’s net equity outflow has reached a record level, according to exchange and NSDL data.
Rising US Treasury yields added to the pressure. The 10-year US yield climbed above 5.3 per cent, making dollar assets relatively more attractive and increasing the valuation hurdle for emerging-market equities. The rupee also remained close to the psychologically important 96-per-dollar mark.
Crude prices compounded concerns, with Brent trading around $100 a barrel as investors assessed the impact of elevated energy costs on India’s import bill and broader economic outlook.
The selloff was broad-based, with auto, metal, infrastructure and FMCG stocks among the major laggards. Maruti, M&M and Tata Steel were among the biggest Sensex losers, while Infosys, HDFC Bank and HCL Tech gained.
