Continuing the downward trend, markets fell to their six-week lows on Thursday on sharp losses in RIL and ONGC shares, after a further drop in global crude oil price.
The benchmark Sensex plunged 229.09 points, or 0.82%, to end at 27,602.01 while the NSE Nifty declined 62.75 points, or 0.75%, to 8,292.90.
The benchmark index has fallen 863 points in the last eight trading sessions.
“Mixed sentiment on the back of a weak rupee and lower oil prices added to the volatility. Foreign outflows on the back of profit-booking also added to the weakness,” said Hiren Dhakan, associate fund manager, Bonanza Portfolio.
Major Sensex losers included ONGC (down 3.21%), Tata Steel (down 2.85%) and Bharti Airtel (down 2.77%).
The Sensex has risen 40% since January and foreign institutional investors (FIIs) have been leading the rally. However, on Wednesday alone, FIIs sold $36 million worth of stocks.
Global crude oil prices fell to $64.24 a barrel, after the Organisation of Petroleum Exporting Countries said there would not be any cut in output, despite the fall in demand from the US, the world’s largest consumer.
Experts have said that a fall in oil prices will hit markets. Sovereign wealth funds, which account for a majority of FII inflows into India, will be left with little surplus capital to allocate if oil prices fall further, Credit Suisse MD Neelkanth Mishra had said.