Indian benchmark shares post longest weekly losing run in 25 years

Business Recorder reported that Indian benchmark indices recorded an eighth consecutive weekly decline, their longest such run in 25 years. Heavy overseas selling, Brent crude trading above $100 a barrel and a jump in global bond yields drove a broad retreat from risky assets. Overseas investors have pulled a record $27.8 billion out of Indian shares this year.

The Nifty 50 lost 3.1% and the BSE Sensex fell 2.7% during the holiday-shortened week. Over those eight weeks, the two indices are down 8.7% and 8.4% respectively. The Nifty's weekly fall was its steepest in over six months, while the Sensex's was its sharpest in over four months. No trading took place on Friday, a local holiday.

Prasenjit Paul of Paul Asset, who also runs the 129 Wealth Fund, said the market is very near its bottom and he does not expect another 10% fall, yet he sees no sharp rebound over the coming three to four months. The rupee weakened to its lowest in two months, while the 10-year yield climbed to a peak not seen in over two years. Fifteen of 16 major sectors ended lower, with auto shares down 5.9% and consumer durables off 6.2% amid a weak monsoon. Only IT gained, adding 0.5%, after softer US inflation reduced expectations of further rate hikes.