Sensex ends 196 points lower on weak global cues, Nifty falls 95 points; Tata Motors, Vedanta, Bajaj Auto among top losers
Equity benchmark Sensex fell by 197 points on Monday, tracking weak global cues and unabated foreign fund outflows
Auto stocks were at the receiving end with investor sentiment taking a hit after the government proposed a hike in registration fees for old and new vehicles and changes in scrappage policy to give a boost to electric vehicles
Among the Sensex constituents, Tata Motors was the biggest loser with 6.52 percent fall, followed by Vedanta 5.09 percent, Bajaj Auto 4.99 percent, Maruti Suzuki 4.26 percent and Tata Steel 2.65 percent
Of the 30 stocks of Sensex, 23 ended in the red and only 7 closed in the green
Mumbai: After a day's breather, benchmark indices Sensex and Nifty on Monday resumed their weakening trend to settle around the levels seen two months ago, mainly due to heavy selling in auto stocks.
Besides, weak Asian stocks coupled with the sustained outflow of foreign funds weighed on investors' sentiment.
The 30-share Sensex ended 196.82 points, or 0.52 percent, lower at 37,688.28, while the broader NSE Nifty fell 95.10 points, or 0.84 percent, to settle at 11,189.20.
The auto sector that was grappling with tepid sales numbers and growth concerns has to face a new challenge in the wake of the government's announcement of new policy measures, including lower taxes, to push electric vehicles.
One more hurdle came in the way of this traditional sector in form of government's proposal to hike registration fees for old and new vehicles, leading to heavy sell-offs in auto stocks.
Sectorally, BSE auto tumbled 3.55 percent, metal dropped 3 percent, telecom slipped 2.85 percent -- top three laggards.
On the contrary, BSE IT, bank and teck ended in the positive terrain.
The market breadth was tilted in favour of sellers on the BSE as 1,706 stocks declined and 766 advanced.
Among the Sensex constituents, Tata Motors was the biggest loser with 6.52 percent fall, followed by Vedanta 5.09 percent, Bajaj Auto 4.99 percent, Maruti Suzuki 4.26 percent and Tata Steel 2.65 percent. Of the 30 stocks of Sensex, 23 ended in the red and only 7 closed in the green.
Among the gainers were ICICI Bank, HCL Tech, IndusInd Bank, TCS, Infosys, SBI and Bharti Airtel -- gaining as much as 3.32 percent.
"Markets are largely focusing on weak domestic sentiment while cues are mixed from the global front. And, in the absence of any major event, we feel earnings will continue to dictate the market trend," an analyst commented.
Meanwhile, the Indian rupee appreciated by 14 paise to close at 68.75 against the US dollar.
The global crude benchmark, Brent Oil, was trading 0.11 percent lower at $63.30 a barrel.
Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 1,503.26 crore on Friday, as per provisional data.
Asian stocks slipped ahead of the resumption of US-China talks and amid expectations that the US Federal Reserve will cut rates for the first time in more than a decade.
Shares in mainland China were mixed on the day, the Shanghai composite fell, while Hong Kong's Hang Seng index dropped.
In South Korea, Kospi dropped, while Japan's Nikkei declined.
While India VIX fell by 6.79 percent to end at 16.16 levels, BSE Smallcap rose by 1.38 percent to end at 29,088.57 and BSE Midcap registered a rise of 1.68 percent to 25,799.72.
While Sensex rose by 533.74 points to end at 59,299.32, Nifty saw a rise of 159.20 points to end at 17,691.25.
Sensex rallies over 500 points to reclaim 60,200 level after RBI policy outcome; Nifty up 149 points
Tata Steel was the top gainer in the Sensex pack, rising over 2 percent, followed by Infosys, TCS, Reliance Industries, HCL Tech and Bajaj Auto