Mumbai: Key Indian equity indices Monday closed with substantial losses, with the Nifty50 dropping to almost a three-week low, as negative global cues, outflow of foreign funds, as well as heavy selling in index heavyweights subdued investors’ sentiments.
According to market observers, domestic macro-industrial output data points — Index of Industrial Production (IIP) — released Friday eroded investors’ risk taking appetite.
On closing basis, the wider Nifty50 of the National Stock Exchange (NSE) fell by 96.80 points, or 0.94 per cent, to 10,224.95 points.
The 30-scrip S&P BSE Sensex closed at 33,033.56 points — down 281 points or 0.84 per cent.
The BSE market breadth was bearish — 1,664 declines and 1,053 advances.
“Markets ended sharply lower on Monday as the Nifty broke the 10,254 support. The weakness came on the back of weak global cues,” Deepak Jasani, Head – Retail Research, HDFC Securities, said.
“Losses in metal stocks and in index heavyweights HDFC, Larsen and Toubro (L&T) and ITC weighed on market sentiments. The Nifty hit its lowest level in almost three weeks,” Jasani added.
In terms of the broader markets, the BSE mid-cap closed lower by 0.19 per cent and the small-cap index 0.41 per cent.
On the currency front, the rupee weakened by 26 paise to close at 65.42-43 against the US dollar from its previous close at 65.16-17.
According to Dhruv Desai, director and chief operating officer of Tradebulls, shares declined Monday with L&T dragging the indices after it cut its full-year order flow growth guidance.
“Oil price worries kept energy shares such as Reliance Industries under pressure. Oil remained well supported as ongoing output cuts led by the Organisation of the Petroleum Exporting Countries (OPEC) and Russia contributed to a significant reduction in excess supplies, also as tensions in the Middle East raised the prospects of supply disruptions,” Desai said.
“CPI-based inflation data for October will be released post market hours today,” he added.
Vinod Nair, head of research, Geojit Financial Services, said: “Domestic investors turned cautious giving more weight to slow down in IIP to 3.8 per cent, geopolitical tensions in Middle East and continued advancement in crude prices.
“Despite significant tax relief in recent GST council meet, expectation of rise in CPI and WPI inflation added to the cautiousness,” Nair added.
All the sub-indices of the BSE ended in the red except the IT index, which closed up 19.80 points.
On the other hand, the S&P BSE consumer durables index plunged by 361.51 points, followed by capital goods index by 290.22 points, and metal index by 269.28 points.
Provisional data with the exchanges showed that foreign institutional investors sold stocks worth Rs 233.56 crore, while domestic institutional investors divested scrips worth Rs 268.77 crore.
Major Sensex gainers Monday were: Tata Consultancy Services, up 2.06 per cent at Rs 2,758.90; Mahindra and Mahindra, up 1.27 per cent at Rs 1,411.05; Sun Pharma, up 0.99 per cent at Rs 532.50; Kotak Bank, up 0.24 per cent at Rs 994.95; and NTPC, up 0.17 per cent at Rs 176.95.
Major Sensex losers were: Adani Ports, down 4.11 per cent at Rs 414.05; ONGC, down 3.41 per cent at Rs 184.30; Coal India, down 3 per cent at Rs 276.10; HDFC, down 2.15 per cent at Rs 1,671.10; and L&T, down 1.87 per cent at Rs 1,240.35. (PTI)