The domestic stock market failed to sustain morning gains and closed in the negative territory on Monday, with the Sensex slipping nearly 380 points and the Nifty 50 index surrendering the 11,600 level in late-afternoon trade. Investor sentiment was largely battered by lower global markets, along with a weak rupee and heavy selling pressure in FMCG, banking, automobile and oil and gas stocks.
On Monday, the benchmark Sensex index of the BSE closed 332.55 points 0.86% lower, at 38,312.52 points. On the National Stock Exchange, the Nifty 50 plunged by 98.15 points or 0.84% to close at 11,582.35 points. The stock markets had opened on a higher note on Monday following robust GDP growth rate data for the April-June quarter.
On the Sensex, Hindustan Unilever was the top drag — falling almost 5% — followed by Power Grid, Axis Bank, ITC, ICICI Bank, Maruti Suzuki, M&M, ONGC, Yes Bank, Kotak Bank, TCS, SBI, Asian, and NTPC shares, which fell over 1% each. Wipro emerged as the top gainer on the Sensex, jumping over 8% in early morning trade deals on Monday after the IT services company said it has bagged an over $1.5 billion engagement from US-based company Alight Solutions LLC, its biggest deal till date. Wipro was followed by HDFC Bank, Sun Pharma, Bajaj Auto, Vedanta, GDFC and Adani Ports.
The Nifty opened on a positive note on the first day of the week but sharp profit booking was seen in the second half of the day. “Last week, we have seen strong GDP numbers for Q1FY19 which is supportive for current bull market. Most of the companies have posted strong numbers for Q1FY19. So fundamentally speaking, the market is looking weak for short term but on dips, buying will emerge near support levels and stock specific action will continue.
Global stock markets fell for a third straight day on Monday, hurt by worries over the escalation of trade disputes between world powers and a deepening sell-off across emerging market currencies. European shares mostly opened lower while in Asia, MSCI’s broadest index of shares outside Japan and Tokyo’s blue-chip Nikkei shed about 0.7 percent each. A holiday in the United States subdued trading activity.