Indian stock markets fell into negative territory in the morning session after starting on a positive note on Monday with Sensex dropping 130 points and Nifty marking a day's low of 10,404.9. Shares of Tata Steel fell nearly 5% while the stock of fraud-hit PNB slipped 3%.
Indian stock markets started on a positive note on Monday following the global cues as Wall Street managed to settle higher for the sixth straight session on Friday last week. The S&P BSE Sensex gained 43.19 points or 0.13% to open at 34,053.95 whereas NSE Nifty added 36.6 points or 0.35% to begin at 10,488.9 on Monday. Within minutes of opening up, domestic markets pared off all the gains and fell into negative territory with benchmark Sensex losing over 100 points and Nifty index nearing 10,400-mark. Shares of fraud-hit Punjab National Bank continued to decline on Monday also and the stock of Gitanjali Gems plunged about 10%, extending its drop after the jewellery-maker was also alleged in the PNB’s fraud of Rs 11,400 crore.
Shares of ICICI Bank, Yes Bank, Hero MotoCorp were the only notable gainers among the Sensex components on Monday while the stock of Tata Steel witnessed a steep fall in the early morning deals. Shares of Tata group steel-maker Tata Steel slumped over 4% in the morning session followed by a tumble in shares of Adani Ports, M&M, HUL and L&T. A market-wide decline was observed in the Indian stock markets as all the broader and most of the sectoral indices were trading in the red.
Apart from Nifty 50 index, broader indices such as Nifty Next 50, Nifty 100, Nifty 200, Nifty 500, Nifty Midcap 50, Nifty Sml100 Free, and Nifty Mid100 free lost up to 0.3% while seven out of 11 sectoral indices dropped in the early session with Nifty PSU Bank, Nifty Media and Nifty Metal shedding the most.
Earlier on Friday last week, Indian equities finished on a negative note with the Sensex losing as many as 286 points and Nifty concluding below 10,500-mark. The S&P BSE Sensex tumbled 286.71 points or 0.84% to close at 34,010.76 whereas NSE Nifty lost 93.2 points or 0.88% to end at 10,452.3. A rise in global crude oil prices hit the market sentiment.
The S&P 500 rose marginally on Friday to mark its biggest weekly increase in five years, although earlier gains evaporated after the indictment of Russians for meddling in the 2016 presidential election sent investors into defensive mode before a long weekend, Reuters said in a report. The Dow Jones Industrial Average rose 0.08 percent to end at 25,219.38 points, while the S&P 500 gained 0.04 percent to 2,732.22. The Nasdaq Composite dropped 0.23 percent to 7,239.47.