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Nifty50 finishes monthly F&O series 4% lower — key factors that influenced the market

Nifty50 finishes monthly F&O series 4% lower — key factors that influenced the market

Nifty50 finishes monthly F&O series 4% lower — key factors that influenced the market
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By Sandeep Singh  Sept 29, 2022 3:52:42 PM IST (Updated)

The Nifty50 finished the September futures & options series four percent lower — its first negative series in two months and the worst one since May 2022. Here's a look at the key factors that influenced Dalal Street in the September series.

Indian equity benchmarks reversed initial gains in a volatile session on Thursday — a seventh back-to-back day of relentless selling on Dalal Street. The Nifty50 benchmark finished the September derivatives (futures & options) series with a loss of 704.4 points or four percent. This marks the first negative series since June.

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It also translates to the worst performance of the 50-scrip gauge in a monthly series since May 2022.
The Nifty50 made a sharp U-turn in the second half of the month after coming within a little more than 500 points or 2.7 percent of its all-time high, clocked in October 2021. A global sell-off triggered by a third straight hike of 75 basis points in key rates and the Fed's persistently hawkish commentary dented the sentiment on Dalal Street.
A reversal in foreign fund inflows — as the dollar's moves near 20-year highs against six currencies other than the rupee make emerging markets less attractive — has fuelled the downward pressure in the Indian market.
Foreign portfolio investors (FIIs) have remained net sellers of Indian shares for six days in a row — their worst withdrawal in about three months, according to provisional exchange data.
Here's a list of factors that influenced the market in the September series:
  • US rate hike and hawkish Fed commentary
  • Foreign fund outflows
  • Dollar at 20-year highs
  • Rupee at all-time lows against the dollar
  • Crude oil at 9-month lows
  • Fears of a slowdown
  • Overheated Indian valuations
  • The market is set to enter the October series on Friday, September 30, with the outcome of three-day deliberations at the RBI's rate-setting panel — the Monetary Policy Committee.
    Economists in a CNBC-TV18 poll expect the central bank to announce a hike of 50 bps in the repo rate — or the key rate at which it lends money to commercial banks.
    Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!

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