Sensex posted its longest losing streak in a year, as it fell for seven days in a row to hit its lowest close in two weeks on Friday.
According to The Economic Times report, the investors’ confidence was hammered by the steep decline in shares of certain large cap and midcap companies amid mixed corporate earnings.
Investors turned cautious ahead of the forthcoming general elections, said the report.
A terrorist attack in Pulwama in Kashmir, which left at least 37 dead, also weighed on investor sentiment. Weak global cues on Friday also added to the market’s woes.
The weakness in the Indian market is likely to continue for a while, dealers said.
BSE’s 30-share Sensex shed 3.15 per cent over past seven sessions– the longest such decline since February 7, 2018, to close at 35,808 on Friday, its lowest close since January 30.
The market breadth was negative on Friday with losers turning out to be nearly double the number of gainers on BSE.
Amar Ambani, president and head of research, Yes Securities, said, “As we are closer to elections, we are seeing some jitters, though we usually see a rally few days before elections.”
“The terror attack has led to concerns that tensions may escalate on that front,” he added.
Ambani pointed out that a few companies such asTata Motors disappointed in last set of earnings, dampening investor sentiment.
“Every day, we are seeing a new set of companies getting hammered in the large cap space. There is a fear looming that there is no place to hide for investors, given the carnage. While the index has not seen big losses, investors’ portfolios are bleeding,” he said.
