Sensex falls 1,097 points as dry monsoon fears hit markets
The Sensex tumbled 1,097 points (1.4%) on Friday, closing at 74,776, the Sensex tumbled 1,097 points (1.4%) on Friday, closing at 74,776.
Investors got spooked by predictions of India's driest monsoon in 10 years, with HDFC Bank, ICICI Bank and Reliance Industries leading the fall.
Some late selling was also triggered by changes in the MSCI Emerging Markets Index.
On the bright side, the rupee held strong and oil prices dipped.
IMD forecasts 90% monsoon, food inflation
The India Meteorological Department expects only 90% of normal rainfall this year, raising worries about droughts and pricier groceries, especially with El Nino looming.
Vinod Nair from Geojit Investments summed it up: falling oil prices are nice, but food inflation risk was a major drag.
Now all eyes are on next week's RBI policy meeting and GDP numbers to see what happens next.