Sensex cracks below 37,000-mark, tanks 531 points on FPI worries; Kashmir issue spooks investor sentiment

The equity benchmarks were on a weak note during early hours on Monday mainly due to negative global cues. BSE Sensex fell over 531 points to trade below 37,000-mark in early trade on Monday following persistent foreign fund outflows amid negative global cues. At 10.15 am, the BSE S&P Sensex was down 566 points at 36,552 while the Nifty 50 slipped 160 points to 10,289. At the NSE, all sectoral indices were in the red with Nifty PSU banks down by 4.3 percent, metal by 3.2 percent and realty by 1.7 percent. Among stocks, Yes Bank took a massive 8 percent drop to trade at Rs 81.30 per share. Tata Motors was down by 5.6 percent, JSW Steel by 5.3 percent, State Bank of India by 4.9 percent and Vedanta by 4.6 percent. Kashmir issue also spooked investors’ sentiment after the authorities stepped up security at vital installations and in sensitive areas, suspended mobile internet services and either “arrested” or “detained” several leaders in fast-paced developments on Sunday night. The 30-share index was trading 531.94 points or 1.43 percent lower at 36,586.28; and the broader Nifty fell 171.05 points, or 1.56 percent, to 10,826.30 in morning session.

#MarketSellOff | Sensex now down nearly 600 points; The index has shed around 4,000 points from record high pic.twitter.com/fbLJzAtFJN

— CNBC-TV18 (@CNBCTV18Live) August 5, 2019

In the Sensex pack, Yes Bank, Tata Motors, Vedanta, SBI, Tata Steel, Power Grid, ICICI Bank, ONGC, Reliance and Maruti, were among the major losers, falling up to 8.49 percent. On the other hand, TCS, Infosys, Bharti Airtel and HDFC were trading in the green. In the previous session, the 30-share BSE Sensex rose 99.90 points or 0.27 percent to settle at 37,118.22. Similarly, the broader NSE Nifty gained 17.35 points or 0.16 percent to end at 10,997.35.

#MarketSellOff | Nifty now well within the red territory for the year, down 0.4% YTD; As of today, the index has breached 10,800 mark for the first time since February 27, 2019 pic.twitter.com/04DRNu9gK2

— CNBC-TV18 (@CNBCTV18Live) August 5, 2019

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On a net basis, foreign institutional investors sold equities worth Rs 2,888.06 crore, provisional data available with stock exchanges showed on Friday. [caption id=“attachment_6956291” align=“alignleft” width=“380”]  Representational image. Reuters.[/caption] “FPIs withdrew more than they invested as the US-China trade war has started brewing again which is not helping investors’ sentiments,” said Harsh Jain, COO at Groww. Further, “the announcement of rate cuts by Fed in the US has evoked confused reactions and added to the uncertainty,” he added. The Reserve Bank of India (RBI) will hold its three-day policy meeting, beginning Monday (5 August). It is widely expected to cut the benchmark interest rate for the fourth time in a row to boost the economy at a time when key indicators are pointing towards a slowdown, experts said. Elsewhere in Asia, Shanghai Composite Index, Hang Seng, Nikkei and Kospi were trading in the red in their respective early sessions, following intensifying trade war between the US and China. Equities on Wall Street too ended on a negative note on Friday last week. Meanwhile, the rupee depreciated by 86 paise to 70.46 against the US dollar (intra-day). The global oil benchmark Brent crude futures were trading 1.18 percent lower at 61.16 per barrel. --With inputs from agencies