Retail inflation moderated to a three-month low of 6.77 per cent in October from 7.41 per cent the previous month. Also, wholesale inflation in October came in at single-digit after 18 long months.
The rupee may remain weak-to-volatile for a while but the worst is largely over for the currency, said Seshadri Sen, Head of Research at asset management company Alchemy Capital Management.
At 9.53 am, Sensex traded at 60,555.92 points, down 477.63 points or 0.78 per cent, whereas Nifty traded at 18,022.70 points, down 134.30 points or 0.74 per cent.
Among the Nifty 50 stocks, Tech Mahindra, Hindalco, Wipro, Coal India, and Infosys were the top five losers, declining in the range of 1-2 per cent each, National Stock Exchange data showed.
Barring July and August when they were net buyers, foreign portfolio investors (FPIs) had been selling equities in the Indian markets for a year, which started in October last year for various reasons.
According to RBI's latest data, India's foreign currency assets, which are the biggest component of the forex reserves, declined by USD 3.59 billion to USD 465.075 billion.
Good second quarter earnings and high trading volumes during Diwali, which is considered auspicious by investors community, somewhat gave fuel to the financial markets.
New Delhi [India], October 24 (ANI): Foreign portfolio investors have withdrawn funds worth Rs 5,992 crore from Indian stock markets so far in October and become net sellers for the second straight month amid the strong US dollar index, weak rupee, and tightening of monetary policy.