Indian stock markets finished lower on Monday with the headline indices Sensex and Nifty closing in red for the fifth straight day following the global sell-off in equity markets. BSE Sensex fell as much 309.59 points or 0.88% to end at 34,757.16 and NSE Nifty washed off 94.05 points or 0.87% to settle at 10,666.55. During the day, the S&P BSE Sensex plunged 545.95 points to hit a day’s low of 34,520.8 whereas NSE Nifty plummeted 173.8 points to hit a day’s low of 10,586.8. Investors sentiments seemed to have jolted down by uncertainties over US job market, the introduction of a tax on LTCG on equity over Rs 1 lakh in India which has led to a sell-off in domestic equities. The market activity was also subdued ahead of RBI’s repo rate decision due on 7 February 2018.
Indian market at glance
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 was observed in the Indian equities with most of the broader market indices and sectoral indices settling 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, and Nifty Mid100 Free lost up to 0.8% while Nifty Midcap 50 and Nifty Sml100 Free rose up to 0.8%. On the other hand, seven out of 11 sectoral indices of NSE concluded in red with Nifty Bank, Nifty Fin Service, and Nifty Pvt Bank index shedding the most while Nifty PSU Bank, Nifty Pharma and Nifty Auto ended in green. Going ahead in the week after the 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.
Major movers today
Shares of Bharti Airtel, Tata Motors, Power Grid, ITC, Sun Pharma, Coal India, and Maruti Suzuki emerged as the top gainers among the Sensex components rising 1-5% while HDFC, L&T, Kotak Mahindra Bank, IndusInd Bank, Bajaj Auto, Adani Ports, ONGC, Yes Bank, HDFC Bank, TCS, HUL, M&M, ICICI Bank lost up to 4.1%. The heavyweight shares of companies such as HDFC, L&T, HDFC Bank, Kotak Mahindra Bank, TCS, IndusInd Bank, ICICI Bank, Yes Bank, HUL and ONGC contributed heavily to the Sensex losses. Collectively these 10 stocks alone wiped off as much as 379 points out of the 31-point drop as an uptick in ITC, Tata Motors, Bharti Airtel and Maruti Suzuki added 89 points to the index.
The regional markets also saw a steep fall following the sharp drop in Dow Industrials on Friday last week. Among the regional stock markets, Japan’s benchmark Nikkei 225 tumbled 2.6% to 22,682.08, South Korea’s Kospi shed 1.3% to 2,491.75, Hong Kong’s Hang Seng index sank 1.1% to 32,245.22, Australia’s S&P/ASX 200 lost 1.6% to 6,026.2 while markets in China gone for an uptick recovering early losses, managing to end up 0.7% at 3,487.5.
In the early trades, European stock indexes also followed the sell-off suit with Britain’s FTSE 100 losing 1.2% to 7,354.38 and France’s CAC 40 diving 1% to 5,310.59, Germany’s DAX sliding 0.8% to 12,677.69. Wall Street was poised to open lower. Dow futures were down 0.5% to 25,302 and broader S&P 500 futures retreated 0.3% to 2,749, Associated Press reported. “Market jitters spread after the US stock market had its worst session in two years on Friday, fueled by worries about inflation and rising Treasury yields. The strong start to 2018 after the record-setting performances of 2017 has raised concerns markets were overdue for a correction, Associated Press said in a report.
US equities on Friday
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.