Indian equity indices fell substantially in opening trade on Monday, with the Sensex falling almost 817 points due to negative global market trends and outflows of foreign funds.
The Sensex dropped 816.72 points to 57,282.20, falling for the fourth day in a row. The Nifty fell 254.4 points to 17,072.95.
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Power Grid, Tata Steel, Maruti, Mahindra & Mahindra, NTPC, IndusInd Bank, Axis Bank, and Titan were the main laggards in the Sensex group. The only gainers were Nestle and Hindustan Unilever.
Asian markets are trading mostly in the red with Nikkei 225 slipping 642.65 points or 2.37% to 26,511.18, Straits Times losing 32.02 points or 0.99% to 3,195.08, Taiwan Weighted dropped 312.81 points or 2.22% to 13,805.57, KOSPI slumped 58.23 points or 2.54% to 2,231.77, Jakarta Composite lost 90.08 points or 1.25% to 7,088.50 and Shanghai Composite was down by 2.61 points or 0.08% to 3,085.76, while Hang Seng was up by 21.10 points or 0.12% to 17,954.37.
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The US markets ended in red on Friday. The S&P 500 dropped 64.76 points, or 1.7%, to 3,693.23. The Dow Jones Industrial Average tumbled 486.27 points, or 1.6%, to 29,590.41. The Nasdaq plunged 198.88 points, or 1.8%, to 10,867.93. The Russell 2000 index of smaller companies dipped 42.72 points, or 2.5%, to 1,679.59.
“The global macro construct is not favourable for equity markets in the short run. The dollar index above 113 and the US 10-year yield at 3.73% are likely to aggravate FPI outflows which have been gathering momentum during the last three days. The probability of a global recession is also increasing since the US Fed continues to be ultra hawkish,” V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.
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The Sensex fell 1,020.80 points, or 1.73%, to 58,098.92 points on Friday. The Nifty dropped 302.45 points, or 1.72%, to 17,327.35.
Foreign institutional investors (FIIs) have sold shares worth a net Rs 2,899.68 crore, whereas domestic institutional investors (DIIs) purchased shares worth a net Rs 299.10 crore on September 23, as per provisional data available on the NSE.
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“Although India is seen as a bright spot in times of global slowdown concerns, domestic markets will not be completely insulated from overseas turmoil and would continue to see bouts of intra-day volatility,” Prashanth Tapse, Research Analyst, Senior VP (Research) at Mehta Equities Limited, said.
Meanwhile, Brent crude, the international oil benchmark, fell 0.59% to USD 85.64 a barrel. In early trade, the rupee slips 38 paise to an all-time low of 81.47 against the dollar.