The market was off to a good start, but it all headed downhill afterwards. The only brief respite was on the expectations from the JSW energy IPO, which was oversubscribed shortly after it opened for bidding on Monday.
Dollar movements decided sectoral gainers and losers, its strengthening being seen as positive for some sectors and a signal to unload for others.
The Sensex opened at 17,106.74 and hit a high of 17,176.62. It lost 118.40 points from its previous close to end the day at 16983.14.
The metal index was the worst performing one of the day, on the back of a strengthening dollar. It was down 3.29%, with realty acting as a runner-up falling 2.44%. Capital Goods, TECk and IT were the indices to close with gains. The strong dollar bode well for IT, but all three showed minimal upside, and Capital Goods’ 0.69% was the highest among them.
The dollar was valued at Rs46.57 on Monday as opposed to Rs46.60 in the previous session.
The Nifty closed at 5066.70.
Suzlon was the top gainer of the day on the index, gaining 4.16% to close at Rs82.60. Bharti Airtel, HCL, HDFC and Gail were the other gainers of the day.
The top three losers among the Nifty were from the metal space. Sterlite, losing 4.40% to close at 850.10 headed the list, while Sail and Tata Steel followed behind. Reliance Power and DLF were also among the top losers of the day.
There were 14 advances and 36 declines among the Nifty companies.
There could be more pain for the markets in the days ahead, feel some retail investors.
“I expect to see some weakness due to the dollar movement and profit booking by FIIs towards the end of the year,” said Siddharth K Kuvavala, a Mumbai-based investor.
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