Indian shares fall about 1.5 pct on continued foreign selling

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Indian shares fell about 1.5 percent on Monday on continued selling by foreign investors, while uncertainty lingered about the economic impact of the government's demonetisation move. 

 

Foreign investors, who have been net buyers of $5.43 billion of shares this year, offloaded a net $139.57 million on Nov. 17, taking their selling for this month to $1.33 billion. Rupee INR=D2 was hovering around its Brexit lows at 68.20 on fears that the strength in the dollar and rising U.S. bond yields since Donald Trump's election to president could accelerate fund outflows from emerging markets. 

 

The government's move to withdraw higher-denomination banknotes is expected to pull down gross domestic product growth from last year's 7.6 percent by as much as 4.1 percentage points, while corporate operating profits are tipped to fall by as much as 40 percent in the current quarter, will be fewer investors carrying long positions into next month as compared to the previous three months.