Market fell for the sixth straight session with Sensex tumbling over 385 points to hit a fresh six-month low of 25,765.14 and Nifty plunging below the key 8,000-mark on across-the-board sell off amid concerns over the impact of demonetisation coupled with foreign fund outflows.
Once again anxiety gained upper-hand following continued selling by foreign funds amid fresh worries of US monetary policy in view of last week's hints by Federal Reserve Chair Janet Yellen on potential rate hike next month and anticipation that President-elect Donald Trump will resort to protectionism and fiscal expansion.
While domestic cash crunch following demonetisation drive to curb black money played its part, the rupee volatility — which slid from initial gains — sparked intense selling pressure.
Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services Ltd, said, "The cash crunch situation continued to spook sentiment and foreign fund outflows intensified the blow. Bank stocks which were outperforming till date in expectation of benefiting from demonetisation due to sharp increase in deposits have started to lose trend due to increased concern over liquidity issue and effective leveraging of funds." PTI