Markets extend slide for fifth straight session
The benchmark BSE Sensex on Monday cracked below the 33,000-mark by falling nearly 253 points to extend its slide for the fifth straight session due to selling in metal, telecom and banking stocks amid worries over widening current account deficit and possible US Fed rate hike.
The 30-share index closed down 252.88 points or 0.76% at 32,923.12. This is the weakest closing since December 6 last when it settled at 32,597.18. The index had lost 741.94 points in the previous four sessions. The broader NSE Nifty too fell below the 10,100 level by dropping 100.10 points to end at 10,094.25 due to foreign fund outflows amid rising bond yields on prospects of a 25 basis point hike in interest rate by the US Federal reserve this week.
Overall market sentiment remained weak after the RBI data released after market hours on Friday showed current account deficit (CAD) rising to 2% of the GDP at $13.5 billion in the December quarter, up from 1.4% in the year-ago period, due to a higher trade deficit.
The rupee also depreciated by 19 paise intra-day against the dollar at 65.13, which too had a negative influence.
Global cues too were weak as investors moved cautiously before the US Federal Reserve meeting, that is likely to raise US interest rates. “Market continues to drag under global market volatility ahead of the FOMC meet tomorrow, where consensus hints at a 25bps rate hike. Bond yield remains at elevated levels and concern on trade tensions is influencing investors to book profit. Back home, rupee weakened due to widening current account deficit and led investors to remain cautious,” Vinod Nair, head of research, Geojit Financial Services Ltd said.
“Widened fiscal deficit and fresh developments on the political front dampened the market sentiment”, said Manoj Choraria, a Delhi-based NSE stock broker.
Tata Steel was the biggest loser among Sensex components, plunging by 4.24%, followed by Bharti Airtel at 4.16%. Other laggards included Wipro, Yes Bank, Coal India, Infosys, Asian Paint, Bajaj Auto, Adani Ports, SBI, Tata Motors, Kotak Bank, Sun Pharma, ICICI Bank, Hero MotoCorp, Dr Reddy’s, HDFC Ltd, Axis Bank, IndusInd Bank, RIL, ITC Ltd, ONGC, HDFC Bank and M&M that lost up to 2.60%.
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