The government's steps to stop the fall in domestic currency did not bring in confidence among the investors.
After two days of rally, the market is back in the red as the Sensex shed 505 points, slipping the 38000-mark. The NSE Nifty nosedived 137 points.
Investors sentiment was hit by the rupee plunge, trade war concerns and rising crude prices.
The government's steps to stop the fall in domestic currency did not bring in confidence among the investors.
The 30-share Sensex started the session at 38027.81 but soon slipped the 38000 mark. The barometer hit a low of 37549.35 during the intra-day trade before closing at 37585.51, plunging 505.13 points, or 1.33%. The gauge had climbed 677.51 points in the previous two sessions. The broader Nifty tanked 137.45 points, or 1.19%, settling at 11377.75.
Subdued Asian and European markets due to escalating trade war between the US and China, mainly led to the fall in the domestic indices.
Goldman Sachs on Monday downgraded country's equity market as less favourable amid higher valuations, a potential slowdown in economic growth and upcoming national and state elections.
"Markets are currently dancing to the global tunes and we do not see this changing any time soon. We reiterate our consolidation view in Nifty with a bias on the negative side as sustainability seems difficult at a higher level. In fact, it may witness fresh fall if it fails to hold above 11300," Jayant Mangalik, president at Religare Broking, said.
Investor wealth dropped over Rs 1.41 lakh crore on Monday following a weak broader market. Following the sharp fall in stocks, the market capitalisation (m-cap) of BSE-listed companies dropped by Rs 1,14,676.15 crore to Rs 1,55,22,343 crore.
"Since two weeks nothing has improved in the market. Last two days we saw a pullback rally. Investors do not seem to be happy with the government's steps to stem a steep fall in the domestic currency. We expect more 350-400 points correction in the coming days. Nifty may soon break to the 11000 level," A K Prabhakar, head of research at IDBI Capital said.
Heavyweight scrips like Reliance Industries, Sun Pharma, Tata Motors emerged as the biggest laggards. The broader market, too, ended in the red as both the BSE Midcap and Smallcap gauges fell 0.76% and 0.05% respectively.
"It's a function of various macro factors that are affecting the indices. We have to keep an eye on the US dollar, rupee and crude prices to sense the next course of movement in the market. Though this is the politically important year, we are still eight to nine months away from the elections. So prior to that, the macro factors are important for the market," Jagannadham Thunuguntla, head of research at Centrum Wealth, said.
Meanwhile, on a net basis, both the foreign and domestic institutional investors sold shares worth Rs 106.54 crore and 180.36 crore, respectively, on Monday.
- Investors sentiment was hit by rupee plunge, trade war concerns and rising crude prices
- The broader Nifty tanked 137.45 points, or 1.19%
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "BSE")
)
The 30-share Sensex started the session at 38027.81 but soon slipped the 38000 mark. The barometer hit a low of 37549.35 during the intra-day trade before closing at 37585.51, plunging 505.13 points, or 1.33%. The gauge had climbed 677.51 points in the previous two sessions. The broader Nifty tanked 137.45 points, or 1.19%, settling at 11377.75.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}