Stock indices crashed by nearly two per cent on Thursday to close at their lowest levels in this calendar year.
Meanwhile, the rupee also slipped to close at 63.97 a dollar compared to its previous close of 63.84 on Wednesday.
The benchmark, BSE Sensex closed at 26370.98 with a loss of 469.52 points or 1.75 per cent.
Among the broader indices, BSE 100 was down by 1.91 per cent and BSE 200 lost 1.82 per cent. While midcap stocks lost 1.78 per cent, small-cap was down y 1.55 per cent.
On the National Stock Exchange (NSE) the 50-share Nifty closed at 7965.35 with a loss of 159.10 points or 1.96 per cent.
“A host of factors have led to sustained FII selling in Indian equities,” said Hitesh Agrawal - Head Research, Reliance Securities
The recent disappointing fourth quarter earnings season, coupled with the sombre management commentaries, had cast a shadow over the extent of recovery possible in the current fiscal. Added to this is the weak monsoon forecast released by IMD. “It has been a fairly choppy week so far for Indian equities. In three of the four trading sessions the markets have had swings of more than plus (minus) one per cent,” said Sachin Shah - Fund Manager & Head, Emkay PMS.
According to Mr. Shah in the first eight sessions of June, FIIs were net sellers of nearly $1 billion in equities and additional $0.6 billion in debt markets.
