Markets plunge over China crash
The benchmarking indices crashed over 2 per cent on Monday following Chinese markets plunge and geopolitical stress. Analysts indicate some more correction in the markets though assume major support from the domestic investors.
Mumbai: The benchmarking indices crashed over 2 per cent on Monday following Chinese markets plunge and geopolitical stress. Analysts indicate some more correction in the markets though assume major support from the domestic investors.
Even as the markets anticipated slowdown in China, the pace at which it will fall is still not known, while Chinese PMI and Indina PMI reported lower in December.
Sensex hit bottom at 534 points down to close at 25,627 and Nifty lower 171 points to end at 7,793.
Also broader markets also fell with midcap and smallcap indices down 1 per cent each. In line with China's PMI fall, even Indian manufacturing activity contracted in December for the first time in over 2 years which dampened investors sentiment.
On the other hand, even rupee weaken by 44 paise at 66.57 against US dollar thus marking steep fall in nine weeks. On sectoral front, heavy selling is seen in bank, auto, healthcare, capital goods and IT shares. Banking stock which are the top losers include; ICICI Bank, HDFC Bank, Axis Bank and SBI down up to 3 per cent.
With Trai insisting on operators to ensure compliance with call drop regulations, as Airtel, RelCom, Idea shares dropped between 4 per cent and 7 per cent. Also metal stocks closed lower following China concerns include Hindalco, Tata Steel and Vedanta dropped between 1 per cent and 4 per cent.
The gainers: Wipro, up 0.28 per cent at Rs 557.95; Hindustan Unilever, up 0.07 per cent at Rs 857.15; and Asian Paints, up 0.06 per cent at Rs 880.65.
The losers: Tata Motors, down 6.10 per cent at Rs 377.15; Bharti Airtel, down 4.10 per cent at Rs 326.60; Adani Ports, down 3.66 per cent at Rs 257.70; BHEL, down 3.45 per cent at Rs 165.10; and HDFC, down 3.26 per cent at Rs 1,216.35.