SENSEX PLUNGES BY 374 PTS

Stock markets fell more than 1% on Monday, tracking weakness in global markets as investors turned cautious ahead US presidential debate and an OPEC meeting due later in the week.

Equities are likely to remain volatile with the upcoming expiry of futures and options (F&O) contracts later in the week, analysts said.

The benchmark BSE Sensex closed down 374 points, or 1.3%, to 28,294.28, while the wider NSE Nifty ended at 8,723.05, down 109 points, or 1.2%.

“Besides anxiety over F&O expiry week, participants were maintaining caution citing global markets condition ahead of first US presidential debate,” said Jayant Manglik, president, retail distribution, Religare Securities.

Moreover, crude oil prices rose on Monday on hopes that the Organisation of Petroleum Exporting Countries (OPEC) would strike a deal to limit production and revive prices, which have nosedived in the last two years.

Of the 30 Sensex stocks, 25 ended in the red, led by ICICI Bank, Tata Motors and ONGC (all down over 3%).

Most Asian markets also ended lower, led by Shanghai Composite Index, which declined 1.7%, and Japanese Nikkei and Hong Kong’s Hang Seng, falling 1.3% and 1.6%, respectively.

The rupee ended up 4 paise at 66.61 against the dollar.

“The important triggers for the market in the next few weeks will be the meeting of OPEC members this week and the RBI meeting early October, which will be closely watched for any interest rate cuts. CPI (consumer price index) inflation has cooled off to near 5% in August, and that along with the fall in IIP has raised hopes of a rate cut,” said Dipen Shah, senior vice-president at Kotak Securities.