Sensex falls nearly 1,000 points as foreign outflows and crude prices weigh

India’s benchmark stock indices fell sharply on Thursday as continued foreign fund outflows, rising crude prices and broad-based selling weighed on investor sentiment. At 1.47 p.m., the Sensex stood at 71,519.67, down 960.62 points, or 1.33 per cent. The index had opened at 72,192.89 and touched an intraday low of 71,467.45.

The Nifty 50 was at 22,289.25, down 331.20 points, or 1.46 per cent. The sell-off extended to broader markets. The Nifty Midcap 50, Midcap 100 and Smallcap 100 declined by 1.07 per cent, 1.13 per cent and 1.35 per cent respectively, while India VIX, a gauge of market volatility, rose 9.08 per cent.

The market capitalisation of companies listed on the Bombay Stock Exchange fell by about Rs 10.32 lakh crore during the session, from roughly Rs 4,73,09,634.31 crore at the start to Rs 4,62,77,942.33 crore by 1.50 p.m. Auto stocks led the decline after companies reported figures that fell short of expectations ahead of the festive season. The Nifty Auto index fell 3.78 per cent.

Mahindra & Mahindra dropped 4.21 per cent, Maruti Suzuki declined 3.76 per cent and Tata Steel fell 3.25 per cent. Foreign selling remained a major concern. Data showed foreign institutional investors sold Indian equities worth Rs 10,148.41 crore on Wednesday.

Geojit Investments strategist V.K. Vijayakumar said selling had intensified over the previous two sessions. Crude prices also rose, with Brent at $99.82 a barrel and West Texas Intermediate at $92.22.

Vijayakumar said the market’s current weakness could be temporary and that falling crude prices could help sentiment. Nifty IT and private banks were among the few sectors in positive territory.