Fears over a rise in global trade protectionist measures and a possible crude oil production cut by the OPEC pulled the barometer S&P BSE Sensex index lower by over 570 points on Thursday.
Market observers said the Indian stock indices fell in line with their global peers in Asia and Europe even as outflows of foreign funds, weak rupee and uncertainty over the outcome of Assembly elections also weighed on investor sentiments.
Selling pressure was seen across all sectors which was led by energy stocks, which shed 2.52 per cent, the most on the BSE, followed by realty and auto stocks.
Besides, crude oil prices remained volatile amid expectations of supply cuts by OPEC, the group of 15 of the world’s top oil producers which is to meet on December 7.
“Investors are closely watching the meeting between the OPEC and other top oil-producing countries. Investors also turned cautious in the run up to the results of five state elections,” said AbhijeetDey, Senior Fund Manager-Equities, BNP Paribas Mutual Fund.
Brent crude oil price slipped to $60.46 per barrel when the markets closed.
“The election result is likely to set the tone for the general elections,” Dey said. Centrum Broking’s Senior VP and Head of Research (Wealth) JagannadhamThunuguntla said: “Capital markets had a rough day as they are trying to navigate too many data points such as re-emergence of sharp weakness in Indian rupee, upcoming OPEC meeting outcome in terms of production cut and election results.
“The nervousness is quite evident as there is sharp sell-off across the industries, especially in those stocks where there are corporate governance concerns.” (IANS)