Indian stocks extend losses into third straight day

NEW DELHI: Indian stocks extended their losses into the third straight session tracking a sharp fall in stocks in the US market coupled with some profit booking after the recent month-long bull run.

At 9.27 a.m., Sensex traded at 58,661.81 points, down 112.06 points or 0.19% per cent, whereas Nifty traded at 17,478.75 points, down 11.95 points or 0.068 per cent.

"US stocks posted their worst daily drop in two months Monday on fears that the recent rally was based on an overly optimistic view that the Federal Reserve would pivot away from sharply higher interest rates to fight inflation," said Deepak Jasani, Head of Retail Research at HDFC securities.

Until Thursday, Indian stocks extended their bull run for the fifth straight week supported by fresh inflows of foreign investments as well as some moderation in inflation -- both in the US and India. Also, the latest softening of international crude oil prices infused buying sentiments among investors.

The total market capitalisation of BSE-listed companies last week touched an all-time high. Besides, the benchmark index Sensex touched the psychologically crucial 60,000 mark on Wednesday after more than four months to later fall due to profit booking.

During the past five weeks, benchmark indices - Sensex and Nifty - rose nearly 10 per cent on a cumulative basis, thereby recovering largely the entire losses they witnessed so far in 2022. The latest rally in stocks made Indian investors richer by around Rs 25 trillion.