New Delhi [India]: Indian equity indices extended their losses from the previous week and traded marginally lower in the morning session on Monday.
The financial markets have been going through sharp volatility in line with inflationary pressures globally, led by supply-chain disruptions in global energy and food trade.
Inflationary concerns have led to aggressive monetary policy tightening by various central banks, bringing in the likelihood of a recession.
At 9.41 a.m, Sensex was at 52,881.83 points, down 26.10 points, down 0.049 per cent, whereas Nifty was at 15,724.35 points, down 27.70 points or 0.18 per cent.
In June, the two indices declined around 5 per cent each.
Among the individual stocks, ONGC, Hindalco, Tata Steel, JSW Steel, and TCS were the top five losers among the Nifty 50 companies on Monday, while Indusind Bank, Britannia, Power Grid Corporation of India, ITC, and Hero Motocorp were the top five gainers, data showed.
Besides, foreign portfolio investors pulling out money from India for the past consecutive nine months are also putting downward pressure on the domestic indices.
FPIs have been persistently selling equities in the Indian markets due to various reasons, including tightening of monetary policy, rising current account deficit on account of depreciation of rupee, and rising dollar and bond yields in the US. FPIs typically prefer advanced economies in times of sharp volatility and uncertainty in the overall financial markets.
So far in 2022, they sold equities worth Rs 217,619 crore, NSDL data showed. During the same period, Sensex and Nifty declined over 10 per cent each.