Sensex Dives 444 pts on Global Sell-off, Nifty Below 8,800 

Mumbai: The BSE Sensex on Monday plunged by 444 points, its biggest single-day drop since the Brexit fallout on June 24, to end at nearly two-week low of 28,353.54 and the NSE Nifty went below 8,800-mark, tracking global meltdown due to heightened fears over US interest rate hike. NSE Nifty tanked 151.10 points or 1.70 percent to 8,715.60 points. The domestic stock markets will remain closed on Tuesday on account of Eid al-Adha.

Market sentiment was weighed down by weakness in global markets, triggered by renewed concerns of the US Federal Reserve raising interest rates this month. Equity brokers said concerns about the slow down of inflows into emerging markets if the US raised interest rates, leading to fall in banking as well as metal stocks. Investors also turned cautious ahead of macroeconomic data, IIP for July and inflation data for August, scheduled to be released later in the day.

Market sentiment was weighed down by weakness in global markets, triggered by renewed concerns of the US Federal Reserve raising interest rates this month. Equity brokers said concerns about the slow down of inflows into emerging markets if the US raised interest rates, leading to fall in banking as well as metal stocks. Investors also turned cautious ahead of macroeconomic data, IIP for July and inflation data for August, scheduled to be released later in the day.

As many as 26 Sensex stocks closed with losses, including Tata Steel, Adani Ports, SBI, L&T, NTPC, Axis Bank, Tata Motors, M&M, Hero MotoCorp, Bajaj Auto, ITC Ltd, GAIL, Lupin. However, Infosys, TCS, RIL and Wipro notched up gains. Among sectoral indices, realty suffered the most by falling 5.23 per cent followed by metal 4.34 per cent, capital goods 3.25 per cent, power 3.14 per cent, PSU 2.95 per cent, auto 2.61 per cent and banking 2.39 per cent.

While IT index rose 0.87 per cent and teck gained 0.26 per cent. The broader markets too remained under pressure, with the BSE mid-cap index slumping 2.95 per cent, its biggest single-day fall in six months, and the small-cap index shedding 2.35 per cent. Globally, Asian and European stocks tumbled, extending last week’s sell-off hit by fears that the US Federal Reserve could be closer to an interest rate hike.

For the day, benchmark indices in Hong Kong, Singapore and Shanghai Composite Index lower by up to 3.36 per cent. European markets were also in negative zone with key indices in France, Germany and the UK down by up to 2 per cent their in early trade.

Rupee Slips 28paise to 66.96/USD

Coming to the foreign exchange (forex) market, the rupee depreciating by 28 paise to 66.96 against the dollar. The weakness of rupee also impacted the sentiment. Rupee fell for the third straight session as the US dollar firmed up against some currencies overseas amid a lower opening in the domestic equity market.

Forex dealers said apart from sustained demand for the American currency from importers, foreign fund outflows and US dollar’s gains against other currencies overseas, also weighed on the rupee.

Source: PTI