Indian stocks break two days rally on Monday

RSTV Bureau
Indian stock markets closed down by over 1.3% on Monday.

Indian stock markets closed down by over 1.3% on Monday.

Indian stock markets turned nervous ahead of release of GDP numbers, that were released later in the day. The weakness was further aggravated during the afternoon trading due to bearish cues from European markets. Benchmark, BSE Sensex plunged by 1.34%, NSE by 1.36% on Monday, snapping the rally witnessed in previous two trading sessions.

This is the BSE Sensex’s biggest single day fall since January 20 when it closed down by 1.7%. It had gained 394 points in the last two sessions on Thursday and Friday.

BSE opened on a flat note and remained sideways for most part of the session awaiting quarterly GDP numbers, but sank heavily on weak opening in European shares. All three important European indexes – FTSE, DAX and CAC 40 closed down between 2 to 3% today.

Most markets in Asia, including China and Hong Kong, were closed for the Lunar New Year holiday. However, Japan’s Japan’s Nikkei, that was open today, ended 1.1 per cent higher.

“Continuous fall in oil prices and slowdown in China is impacting global markets as well as India. European market has reacted negatively on disinflation concerns,” said Vinod Nair, Head-Fundamental Research of Geojit BNP Paribas.

Indian Rupee also depreciated by as much as 30 paise against the American greenback.
The BSE Sensex resumed higher at 24,637, and firmed up further to a high of 24,699 on early buying in view of good foreign capital inflows. However, it dropped afterwards to 24,197 on fag-end selling pressure on the back of lower European cues, before finishing at 24,287 showing a loss of 330 points or 1.34 per cent.

The 50 share NSE Nifty also moved down by 102 points or 1.36 per cent to close at 7,387 after moving in a range of 7,513 to 7,363.

Steel stocks extended gains registered in the previous session after the government set a floor price or minimum import price (MIP) for import of a total of 173 steel products in a bid to restrict cheap steel imports which has adversely affected the domestic steel industry.

(With inputs from agencies)