Benchmarks rebounded from the day’s lows, posting a lower opening, on the strength of index heavyweights such as ITC and Hindustan Unilever. The Sensex, which fell 490 points to an intraday low of 58,525.89, wiped out all of its initial losses and is currently trading at 59,024.50, up 20.88 points and the NSE Nifty is at 17. 578.75, down eight points.
Asian stocks fell on Monday, with the Hong Kong Hang Seng falling 4%, the Straits Times down 0.35% and the Australian S&P ASX 200 nearly 2% ahead of a week packed with no less than a dozen meetings central banks, highlighted by the federal government. Reserve which is likely to take a further step towards reduction.
The MSCI’s largest Asia-Pacific stock index outside of Japan fell another 1.4%, after losing 2.5% last week, with Australia losing 1.5%.
Japan’s Nikkei was closed, but futures were 400 points lower on Friday’s liquidity close. The market would need to consolidate after hitting 30-year highs in hopes that a new prime minister will bring more stimulus and policy change.
Back home, twelve of the 15 sector indicators compiled by the National Stock Exchange were trading lower, led by the 3.5% drop in the Nifty Metal index. The indicators for the Nifty Bank, Auto, PSU Bank, Private Bank and Realty sectors also fell between 0.7% and 1.2%.
In contrast, the FMCG, information technology and media indices traded lower.
Small and mid-cap stocks also came under selling pressure, with the Nifty Midcap 100 index falling 0.6% and the Nifty Smallcap 100 index falling 0.3%.
Among individual stocks, Lupine fell 3.23% to an intraday low of Rs 913 after the company informed the exchanges that the US drug regulator, the US Food and Drug Administration (FDA), has carried out an inspection at its facilities in Goa with seven observations.
Tata Steel was Nifty’s best loser, the title fell nearly 5% to Rs 1,321. Eicher Motors, JSW Steel, Hindalco, UPL, HDFC, hero MotoCorp, Bajaj Auto, Bharat Petroleum, Indian Oil, Power Grid , Mahindra & Mahindra, Maruti Suzuki, Coal India and Adani Ports also fell 1-3%.
On the other hand, ITC, HCL Technologies, Hindustan Unilever, Tech Mahindra, Tata Consultancy Services, Divi’s Labs, Infosys, Britannia Industries and Nestlé India were among the winners.
The overall scale of the market was negative as 1,536 stocks were down while 1,195 rose on BSE.