The domestic equity indices on the BSE and National Stock Exchange (NSE) fell over 1.5 per cent on Monday dragged by the banking and financial stocks ahead of the bi-monetary policy of the Reserve Bank of India (RBI) later this week.
A rise in the domestic coronavirus cases and weakness in the global markets also dented investor sentiment.
The S&P BSE Sensex tumbled 667.29 points (1.77 per cent) to settle below 37,000-level at 36,939.60, while the NIfty 50 cracked 173.60 points (1.57 per cent) to end below the 11,000-mark at 10,899.85. Both the equity benchmarks had opened over 0.5 per cent lower earlier in the day and slipped further as the day progressed.
The 30-share BSE topline index hit a low of 36,911.23 during the intraday trade, while the NSE benchmark slipped to 10,882.25.
On the Sensex, Reliance Industries (RIL), HDFC Bank, Kotak Mahindra Bank, Housing Development Finance Corporation (HDFC), Infosys and Tata Consultancy Services were the biggest contributors to Monday’s fall.
Among the sectoral indices, the Nifty Private Bank index was the worst performer of the day crashing 2.89 per cent due to an over 10 per cent fall in shares of Bandhan Bank. This also led to a 2.33 per cent fall in the key Bank Nifty. These apart, the Nifty Financial Services index also fell 2.18 per cent dragged by SBI Life Insurance Company and HDFC Life Insurance Company.
Here’s how the sectoral indices performed:
In the broader market, the mid-cap and small-cap stocks outperformed their benchmark peers on Monday. The S&P BSE MidCap index slipped 42.32 points (0.31 per cent) to end at 13,716.79, while the S&P BSE SmallCap rose 132.85 points (1.02 per cent) to settle at 13,154.61.
The rupee plunged 20 paise and settled below the 75 per US dollar level on Monday tracking negative domestic equities and strengthening American currency.
The rupee opened on a weak note at 74.91 at the interbank forex market, and closed for the day at 75.01 (provisional) against the US dollar, registering a decline of 20 paise over its previous close of 74.81 against the greenback.
During the session, the local unit witnessed an intra-day high of 74.88 and a low of 75.03 against US dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.11 per cent to 93.45.
Forex traders said foreign fund outflow, strong dollar, muted domestic equities and rising COVID-19 cases dragged the local unit down.
World stocks began August cautiously as US lawmakers struggled to agree a new stimulus plan following a global surge of COVID-19 cases, though a squeeze on crowded short positions left the dollar clinging to a tentative bounce.
European stocks opened slightly higher on Monday following mixed moves in Asia. The pan-European STOXX 600 index rose 0.6 per cent, helped by a rise in technology stocks, but gains were capped by poor earnings updates from big banks.
E-Mini futures for the S&P 500 were little changed, with investors nervous about the lack of a new stimulus package in the United States and White House Chief of Staff Mark Meadows not optimistic about a deal.
In Asia on Monday, China’s factory activity data showed the fastest pace of expansion in nearly a decade.
That helped China’s blue chips rally 1.6 per cent, offsetting worries about US-China relations. Japan’s Nikkei added 2.2 per cent, courtesy of a pullback in the yen. South Korea shares were flat.
– rupee input from PTI; global input from Reuters
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