Mumbai: Market benchmark BSE Sensex tanked nearly 537 points to end at over two-month low of 36,305.02 and the Nifty crashed below the 11,000-mark on Monday, extending their slide for the fifth straight session after heavy losses in banking and auto stocks.
Reports of liquidity concerns following the default in repayment of loans by diversified IL&FS group spooked investors even as losses in global markets on reports that China had called off planned trade talks with the US in the wake of a new round of duties weighed on the market sentiment.
The broader NSE Nifty cracked below the 11,000 level by dropping 168.20 points, or 1.51% to end at 10,974.90 due to foreign fund outflows amid prospects of a 25 basis point hike in the interest rate by the US Federal Reserve this week.
Mahindra and Mahindra fell the most by 6.46% among 30 Sensex stocks while Maruti and Bajaj Auto decline by 3% and 1.7% respectively.
Financial stocks led by HDFC took a hit. HDFC dropped 6.22%, IndusInd Bank by 4.94%, ICICI Bank by 2.8%, Kotak Bank by 2.6%, HDFC Bank by 2.16%, and SBI by 2.04%.
Yes Bank fell by another 0.35%, taking its total losses to more than 29% after the RBI curtailed the term of its founding CEO Rana Kapoor.
Bucking the trend, IT stocks TCS and Infosys rose by 4.5% and 1.5%. Coal India rose by 2.1% while Reliance gained 1.27%.
Sentiments remained distinctly weak in sync with declining global markets as the intensifying dispute between the world’s two biggest economies has spooked financial markets worried about the fallout on global growth, brokers said.
The Reserve Bank of India (RBI) and market regulator Sebi said on Sunday that they were closely monitoring the developments in the financial sector and were ready to take “appropriate actions” to calm the jittery investors.
Meanwhile, Finance Minister Arun Jaitley said Monday that the government would take all measures to ensure adequate liquidity for non-banking financial companies (NBFCs) and mutual funds.