Key indices sank more than 1% on Monday, mirroring sluggish global markets and a significant drop in IT stocks. The much-anticipated 45th Annual General Meeting (AGM) of Reliance Industries failed to boost shares. On the BSE, the stock finished 0.7% down.
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The Sensex fell 861.25 points, or 1.46%, to 57,972.62. It dropped 1,466.4 points, or 2.49%, to 57,367.47 throughout the day. Likewise, the Nifty dropped 246 points, or 1.4%, to 17,312.90.
Tech The Sensex’s largest loss was Mahindra, which fell 4.57%, followed by Infosys, Wipro, HCL Technologies, Tata Consultancy Services, Kotak Mahindra Bank, Tata Steel, Axis Bank, ICICI Bank, and State Bank of India.
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Maruti, Nestle, Asian Paints, ITC, M&M, and Hindustan Unilever, on the other hand, were among the winners.
Asian markets finished mixed on Monday. The Shanghai Composite gained 0.14%, while the Nikkei 225 led the Hang Seng lower. They fell 2.66% and 0.73% respectively.
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During the mid-session trades, European stock markets were trading down. On Friday, the US markets finished considerably down.
“Jerome Powell’s hawkish tone during the Jackson Hole symposium pointed towards a stricter rate hike while investors were expecting a milder policy action post the release of the softer July inflation reading. This has increased concern about an economic slowdown, which has caused a significant sell-off in the US market and spillover effects on markets around the world.
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“The sell-off in emerging markets like India was exacerbated by concerns over the possible withdrawal of foreign funds, which was the backbone of the recent market rally,” said Vinod Nair, Head of Research at Geojit Financial Services.
Foreign institutional investors (FIIs) offloaded shares worth Rs 51.12 crore on Friday, according to exchange data.
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Meanwhile, the international oil benchmark Brent crude climbed 0.79% to 101.8 per barrel. After hitting an all-time low, the rupee recovered some of its losses to settle 10 paise down at 79.94 (provisional) against the US dollar on Monday, tracking the strength of the American currency and firm crude oil prices.