Sensex crashes 505 pts, Nifty at 11,378 on weak global cues
Mumbai :The benchmark indices settled over 1 per cent lower on Monday taking cues from their global peers, which fell amid reports that the US was about to announce a new round of tariffs on Chinese imports.
The S&P BSE Sensex ended at 37,586, down 505 points while the broader Nifty50 index settled at 11,378, down 137 points.
That apart, a weak rupee also affected sentiment. The domestic currency slipped to an intra-day low of 72.62 against the greenback earlier in the day. The domestic unit on Friday had surged by 34 paise to close at a one-week high of 71.84 against the US dollar on positive macro data and hopes of policy intervention by the government to defend the volatile currency.
In key stocks, Reliance Industries (RIL) fell over 2.3 per cent, while Sun Pharmaceutical Industries (Sun Pharma) cracked over 2.7 per cent. Financial stocks such as HDFC, HDFC Bank, State Bank of India (SBI) and Axis Bank fell by up to 2.5 per cent.
Among sectoral indices, the Nifty FMCG index settled 1.4 per cent lower weighed by fall in share prices of Godrej Industries and Procter & Gamble Hygiene and Health Care.
Investor sentiment also took a hit as global financial services company Goldman Sachs said India’s world-beating stock market run is over. It has downgraded domestic stocks to the equivalent of a hold rating from buy. This is the first time it has lowered Indian stocks since 2014. Here are five reasons why the global research house has lowered its India rating.
Most Asian share markets slid on Monday amid reports Washington was about to announce a new round of tariffs on Chinese imports, setting the stage for possible reprisals by Beijing.
MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 1.2 per cent, snapping three straight sessions of gains. Shanghai blue chips fell 1.1 per cent, while the Hang Seng shed 1.6 per cent.