The benchmark Nifty index on Tuesday ended at 11,085, the lowest level in nearly five months and also below the 200-day moving average (DMA), a key technical support. The index has lost 5.2 per cent, or 603 points, in just nine trading sessions amid a sharp sell-off by foreign portfolio investors (FPIs), who are spooked by the increase in tax surcharge.
The 50-share index of bluechip companies is now down 8 per cent from its all-time high scaled last month. The correction has been sharper in the broader market with the NSE Midcap 100 and NSE Smallcap 100 currently at their lowest level since February 2017 and December 2016, respectively. FPIs have pulled out more than Rs 11,000 crore from domestic equities this month.
In the red