Indian equities fell for the fifth consecutive day on Monday, taking cues from global markets rattled by the regulatory moves against Goldman Sachs and fears that the RBI may increase rates more than earlier expected on Tuesday..
?The Goldman news caused weakness in US and Europe and our market took the cue,? said Devesh Kumar, group CEO, Fortune Financial Services. ?The market had entered the upper end of the trading band and it was time for some correction. There was also nervousness about a higher-than expected rate hike.?
According to provisional BSE data, FIIs were net sellers to the tune of Rs 755 crore, while domestic institutional investors bought shares worth Rs 569 crore. In the 31 sessions since the Union Budget, FIIs had invested Rs 25,111 crore.
The mood in Asia Pacific was sombre as well. Benchmark indices in Hong Kong, Indonesia, Japan, China, Singapore and South Korea all declined. The Nikkei 225 and the Shanghai Composite dipped the most, slipping 2.1% and 4.79%, respectively. The BSE Sensex fell 190.5 points, or 1.08%, to close at 17,400.68, while the broader 50-share Nifty of the National Stock Exchange (NSE) ended down 58.95 points, or 1.12%, at 5,203.65. All the sectoral indices ended in the red on Monday. BSE’s metal and realty indices dipped the most — 2.11% and 2.51% respectively.
?Going forward, the market will correct and then appreciate again. The credit policy, the corporate earnings and the monsoon are some of the factors to watch out for,? said Kumar.
