MUMBAI: Indian shares slid over 1% on Thursday, erasing all their gains from the previous day when Donald Trump was elected US president, with analysts blaming profit-booking and concerns over foreign inflows, while weak earnings also weighed.
The NSE Nifty 50 fell 1.16% to 24,199.35, while the BSE Sensex shed 1.04% to 79,541.79, near their closing levels on Tuesday. The indexes jumped 1.1% on Wednesday in their best day in over six weeks after Trump’s victory.
The drop is “more of a technical pullback, with some investors trying to use the rally in the previous session to book profits,” said Sunny Agrawal, an analyst at SBICaps Securities. “The other, more deeper concern is over foreign flows. A rise in the US Treasury yields in anticipation of a tariff hike on imports by Trump and the consequent rise in US dollar index and inflation could hurt foreign inflows to India.”
Foreign investors pulled out a record $11.2 billion from Indian equities last month and have removed $1.26 billion, on a net basis, this month through Wednesday.
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