Benchmark stock indices Sensex and Nifty fell around 1% each in early trade on Monday, dragged by selling in IT banking and auto stocks due to weak global trends. , Photo credit: The Hindu
Benchmark stock indices Sensex and Nifty fell around 1% each in early trade on Monday, dragged by selling in IT banking and auto stocks due to weak global trends.
The 30-share BSE Sensex fell 474.96 points, or 0.82%, to 57,514.94, as its 28 constituents were trading in the red in the opening session.
The broader Nifty at the National Stock Exchange declined 139.10 points, or 0.81%, to close below the 17,000-level at 16,960.95. Its 45 stocks declined led by Adani Enterprises, JSW Steel and Hindalco.
Mahindra & Mahindra was the biggest loser in the Sensex pack, falling 1.86 per cent. Tata Steel, Tata Motors, IndusInd Bank, Tech Mahindra, Infosys and TCS declined more than 1 per cent each. Reliance, SBI, ICICI Bank, HDFC, HDFC Bank and Axis Bank also fell.
Hindustan Unilever and Kotak Bank bucked the trend, rising up to 0.24% each.
The US banking crisis remained center stage, keeping participants on their toes. Besides, the steady outflow of foreign funds has added to the concern, analysts said.
Most Asian markets declined despite coordinated efforts by global central banks to ease the looming banking crisis.
Banking giant UBS is buying beleaguered Credit Suisse for about $3.25 billion. The deal was brokered by regulators to avoid further market turmoil in the global banking system after Credit Suisse’s plan to borrow up to $54 billion failed to reassure investors and the bank’s customers.
In Asia, Hong Kong’s Hang Seng fell 2.3%, Tokyo’s Nikkei 225 fell 0.97% and in Seoul the Kospi fell 0.39% and the Singapore STI fell 0.87%, with the Shanghai Composite index up 0.24%.
US markets closed lower on Friday amid fears that the banking system could crack due to a hike in interest rates. The S&P 500 sank 1.1%, the Dow Jones Industrial Average fell 1.2%, and the Nasdaq Composite fell 0.7%.
On Friday, foreign institutional investors (FIIs) were net sellers and sold Indian equities worth Rs 1,766.53 crore, while domestic institutional investors (DIIs) were net buyers worth Rs 1,817.14 crore.
Foreign investors have infused ₹11,500 crore into Indian equities so far this month, mainly driven by US-based GQG Partners’ bulk investment in Adani group companies.