Sensex, Nifty fall nearly 4 percent on U.S. stimulus, capital control fears

MUMBAI (Reuters) - The BSE Sensex and the Nifty fell 4 percent on Friday, marking their biggest single-day drop in almost two years, as blue chips including HDFC Bank were hit across the board on fears U.S. stimulus tapering would hit foreign selling.

The Reserve Bank of India's measures late on Wednesday to restrict how much its citizens and companies can invest abroad also raised fears of outright capital controls that would further undermine the confidence of foreign investors.

HDFC Bank provisionally fell 4.9 percent, while Reliance Industries ended 3.8 percent lower.

The BSE Sensex provisionally fell 3.87 percent, while the Nifty ended down 4.08 percent, marking their biggest single-day fall since September 22, 2011.

 

(Reporting by Abhishek Vishnoi; Editing by Subhranshu Sahu)