Caution ahead of the US Federal Reserve’s key interest rate decision later this week weighed on Indian equity indices, with the Sensex ending a 11-session winning streak on Monday. It fell 242 points, or 0.36%, to end at 67,597 dragged by index heavyweights Reliance Industries, HDFC Bank and Infosys.
The broader NSE index, on the other hand, lost 65 points, or 0.32%, to end at 20,127.65.
Both benchmarks had gained nearly 2% each last week and closed at record highs.
From the Sensex pack, HDFC Bank, Bharti Airtel, Infosys, UltraTech Cement, Reliance Industries, and Wipro were the top laggards, falling 1-2%. On the flip side, Power Grid, Titan, M&M, NTPC, and Bajaj Finserv closed higher.
Among individual stocks, Vodafone Idea shares closed 7% lower after the company denied reports of it getting acquired. The company said that it was not in discussion with anybody to be taken over.
Bharat Electronics shares closed over 3% higher after the firm received orders worth Rs 3,000 crore.
Sector-wise, Nifty Realty declined 1.37% and Nifty Metal fell 0.1.11%. Whereas, Nifty PSU Bank and Nifty Auto closed higher. Meanwhile, Nifty Midcap100 declined 0.42%, and Smallcap100 dropped 0.54%.
The market breadth was skewed in favour of the bears. About 2,082 stocks declined, 1,693 gained, and 172 remained unchanged on the BSE.
Expert Views
“Domestic markets relinquished their momentum as they anticipated a raft of policy rate decisions due this week. The investor’s confidence was also impacted by the expectations of a demand resurgence in China, combined with crude supply cuts,” said Vinod Nair, Head of Research at Geojit Financial Services.
“With the Fed rate hike fears back on the cards, as reflected in the elevated US bond yields, the markets await clarification from major central banks,” Nair added.
Deepak Jasani, Head of Retail Research at HDFC Securities, said, “Nifty formed a small range bound candle, but over the last three days a bearish Tristar Doji seems to have been formed. If this is true, the Nifty may have formed a short-term top at 20222 that may result in a small decline towards 19940. A move below 19865 could lead to acceleration in decline for the Nifty. “
Global Markets
World shares fell while the dollar firmed on Monday as growth concerns tested investors’ mettle ahead of a week brimming with central bank meetings in countries, including Norway, Sweden, Switzerland, Britain, the United States and Japan.
The pan-European index slipped 0.5%, dragged down by health care, bank and chip stocks. US futures S&P 500 and Nasdaq edged up 0.1%.
Oil Rises
Oil prices rose for a third straight session, buoyed by forecasts of a widening supply deficit in the fourth quarter after Saudi Arabia and Russia extended cuts and by optimism about a recovery in demand in China.
Brent crude futures rose 51 cents, or 0.54%, to $94.45 a barrel, while US West Texas Intermediate crude futures were at $90.6 a barrel, up 59 cents, or 0.66%.
Rupee Falls
The Indian rupee fell to a fresh record closing low on Monday, despite likely help from the Reserve Bank of India, as rising crude oil prices pushed up dollar demand.
The rupee closed at 83.2675 against the US dollar, compared with 83.1850 in the previous session. The local unit weakened beyond its previous record closing of 83.2175 hit earlier this month.
(With inputs from agencies)
