(Bloomberg) -- India’s benchmark NSE Nifty 50 Index entered a so-called correction amid persistent selling by foreign investors and a weak results season that’s led to earnings downgrades.

The gauge fell 1.4% on the day to 23,559 on Wednesday, extending losses from its Sept. 26 peak to over 10%. Global funds have sold local equities for 14 straight sessions through Monday.

India’s already weak market sentiment on earnings was dealt another blow on Tuesday, as October’s consumer prices quickened at their fastest pace in 14 months. This upward pressure breached the central bank’s tolerance level, likely influencing future monetary policy decisions.

The selloff has put the Nifty near its 200-day moving average. “This confluence of support and oversold conditions might trigger a rebound, although any recovery could be limited to select stocks,” said Ajit Mishra, an analyst with Religare Broking Ltd.

Realty firms, which are sensitive to interest rates, were among the worst performers, with the Nifty’s sector gauge falling more than 3%. Consumer discretionary firms also declined as the Nifty India Consumption index fell to its lowest level since June 21.

Mid- and small-cap stocks declined more than larger peers. Still, food-delivery major Swiggy Ltd. climbed nearly 17% in its debut listing after its $1.3 billion IPO drew strong demand from large investors.

©2024 Bloomberg L.P.