India’s stock market extended the losses amid the global sell-off led by a downturn in sentiments followed by uncertainties over US job market, the introduction of a tax on LTCG on equity over Rs 1 lakh in India and subdued action ahead of RBI’s repo rate decision. The S&P BSE Sensex crumbled 545.95 points to hit a day’s low of 34,520.8 whereas NSE Nifty tumbled 173.8 points to hit a day’s low of 10,586.8, nearing its one-month low of 10520.1 as on 5 January 2018 on Monday. The global indicator of NSE Nifty, SGX Nifty Futures edged down 1.1% at 10,601.5 on the Singapore Stock Exchange. Post-Budget 2018, Indian stock markets are likely to be steered by RBI repo rate decision, third-quarter earnings of blue-chip companies such as Tata Motors, PNB and Cipla.
The benchmark Sensex opened at 34,718.85, down by 347.9 points while the wider share indicator Nifty started 156.3 points lower at 10,604.3. A market-wide sell-off pattern has been observed in the Indian equities with all the broader market indices and most of the sectoral indices trading down in red. Among the broader market indices of National Stock Exchange, other than Nifty 50 index, Nifty Next 50, Nifty 100, Nifty 200, Nifty 500, Nifty Midcap 50, Nifty Mid100 Free, and Nifty Sml100 Free fell 1-3%. On the other hand, 10 out of 11 sectoral indices of NSE traded in negative territory with Nifty Metal, Nifty PSU Bank, Nifty Realty losing the most followed by Nifty Pharma, Nifty Auto and Nifty Bank while Nifty IT index was trading in green.
Shares of Yes Bank, HDFC, SBI, Axis Bank, Bajaj Auto, Tata Steel, L&T, Hero MotoCorp, Kotak Mahindra Bank, Adani Ports emerged as the major losers among the Sensex stocks, shedding up to 4% while Tata Motors and Bharti Airtel were the only notable gainers on the index. Shares of heavyweight companies such as HDFC, HDFC Bank, L&T, Yes Bank, RIL, SBI, Kotak Mahindra Bank, Axis Bank, HUL, ICICI Bank, Maruti Suzuki, IndusInd Bank and Tata Steel contributed heavily in the Sensex losses. Collectively these 13 shares washed off as much as 366 points from the index.
Shares of Bosch and Tata Motors will be in focus ahead of their respective third-quarter earnings. Other major companies which are also lined up with their Q3 results are Colgate Palmolive, Ujjivan Financial Services, Cochin Shipyard, ENIL, Eveready Industries, Greaves Cotton, Hudco, IFCI, Timken India and Westlife Development.
FPI’s (foreign portfolio investors) have pumped in a whopping $3.5 billion (over Rs 22,000 crore) into the country’s capital markets in January in anticipation of better corporate earnings and attractive yields.
Earlier on Friday last week, On the worries about the impact of a tightening job market on the prospects for inflation and a surge in bond yields sent investors fleeing equities with the Dow Jones Industrials Average swooning almost 666 points, for its biggest daily percentage loss in 20 months, Reuters said in a report. It was the biggest daily point fall in the Dow since December 2008 during the financial crisis. With Friday’s rout, Wall Street’s three major indexes logged their biggest weekly losses in two years, after closing at record highs the previous week. The S&P 500 and Dow saw their worst weeks since early January 2016 while Nasdaq had its worst week since early Feb 2016, Reuters added. The Dow Jones Industrial Average fell 665.75 points or 2.54% to 25,520.96, the S&P 500 lost 59.85 points or 2.12% to 2,762.13 and the Nasdaq Composite dropped 144.92 points or 1.96% to 7,240.95.
Indian bourses suffered heavy losses on Friday last week as investors sentiments soured after Finance Minister introduced a 10% tax on LTCG on equity over Rs 1 lakh. The 30-share Sensex registered its biggest single-day fall in two-and-a-half years and plummeted by 840 points to settle at 35,066.75. During the week, Sensex had fallen 983.69 points below from the previous week’s closing of 36,050.44. The broader Nifty ended below the 10,800-mark, shedding as much as 256.3 points or 2.33% to finish at 10,760.6 as the post-Budget sell-off continued for the second straight day.