BSE Sensex.
Credit: PTI Photo
Bengaluru: The benchmark indices - BSE Sensex and NSE Nifty - both fell on Monday on back of persistent selling by foreign institutional investors, uncertainty ahead of the United States Presidential elections, and expectations of a fresh stimulus package by China.
The 30-share BSE Sensex tumbled 941.88 points or 1.18% to settle at 78,782.24, the lowest closing level since August 6, as investors lost nearly Rs 6 lakh crore. Nifty fell 1.27% to close below 24,000, dragged down by heavy selling in Reliance Industries and banking shares and persistent FII outflows.
FIIs have offloaded nearly Rs 1 lakh crore in October, making it the worst month for FIIs exiting the markets, and the sell-off is continuing this month.
“As expected, India is underperforming its global peers due to excess valuation. The ongoing selloff has deepened by weak Q2 earnings, dampening investor sentiment. Continued volatility is anticipated in the short-term, as attention shifts to the closely contested US presidential election,” said Vinod Nair, Head of Research, Geojit Financial Services.
Nair said that key economic events, such as the US Federal Reserve and Bank of England policy decisions, will be critical in shaping market movements in the coming days.
“The Nifty has corrected below 24,000 as the index slipped from its recent consolidation pattern. Sentiment will likely remain weak in the
short term,” said Rupak De, Senior Technical Analyst,
LKP Securities.
From the 30-share Sensex pack, Adani Ports, Reliance Industries, Sun Pharma, Bajaj Finserv, NTPC, Tata Motors, Axis Bank and Titan were among the major laggards. Mahindra & Mahindra, Tech Mahindra, State Bank of India, HCL Technologies, Infosys and IndusInd Bank were
the gainers.
All sectoral indices ended in the red. Realty slumped 3%,
oil and gas tumbled 2.54%, while energy (2.51%), telecommunication (2.11%), power (2.06%), industrials (1.72%), and commodities (1.69%)
also declined.
A committee of China’s National People’s Congress is meeting this week triggering speculation that the government may endorse major spending initiatives to boost the economy.
In Asian markets, Seoul, Shanghai and Hong Kong settled higher. European markets were trading mostly higher. The US markets ended in positive territory on Friday.