Global markets are selling off.
But nowhere is it worse than India.
“India’s Sensex 4% drop, the largest in more than 4 years, essential offset the previous four day advance,” noted Brown Brothers Harriman’s Marc Chandler. “Basic materials and banks were the hardest hit sectors.
“Many reports attributed the sharp losses to renewed weakness of the rupee, which fell to new record lows against the dollar, despite official efforts to tighten restrictions on capital outflows.”
The sell-off was also driven by Moody’s move to downgrade the bank financial strength ratings (BFSRs) and baseline credit assessments (BCAs) of three Indian public sector banks.
Here’s a look at the Bombay Stock Exchange’s Sensex Index via Bloomberg: