Mumbai. Local stock markets fell for the sixth consecutive trading session on Monday and the BSE Sensex fell further by 638 points. Whereas NSE Nifty remained at a loss of 219 points. The market came down due to selling in shares of big companies like HDFC Bank and Reliance Industries amid mixed trend in global markets and withdrawal of foreign institutional investors. BSE Sensex based on 30 shares closed at 81,050 points with a fall of 638.45 points or 0.78 percent. At one time during trading it had fallen to 962.39 points.
National Stock Exchange’s Nifty also closed at 24,795.75 points with a decline of 218.85 points or 0.87 percent.
Among the Sensex companies, Adani Ports and Special Economic Zone, NTPC, State Bank of India, PowerGrid, IndusInd Bank, Axis Bank, HDFC Bank, Titan and UltraTech Cement were major losers. On the other hand, the profitable stocks include Mahindra & Mahindra, ITC, Bharti Airtel, Infosys, Bajaj Finance, Tata Consultancy Services and Tech Mahindra.
Vinod Nair, Head of Research, Geojit Financial Services, said, “The downward trend in the Indian market continues… Due to overvaluation, a broad based decline is being seen in the market. Investors are getting attracted towards China. “The reason for this is attractive valuation and incentive measures.” Narendra Solanki, Head (Fundamental Research), Anand Rathi Shares and Stock Brokers, said, “The situation has been complicated by profit-booking by investors, selling by FIIs and risks arising from challenges at the global level, especially in West Asia. This has affected the market scenario….” The market capitalization of BSE listed companies declined by Rs 8.90 lakh crore to Rs 4,51,99,444.70 lakh crore.
The BSE Midcap index relating to medium-sized companies fell 1.85 per cent, while the Smallcap index relating to smaller companies fell 3.27 per cent. Meanwhile, shares of Ola Electric Mobility fell more than eight percent to Rs 90.82. The company’s stock has come down after the report regarding the quality standards in its electric scooters and the altercation between the company’s CEO on social media. Global oil standard Brent crude stood at $ 79.68 per barrel with a gain of 2.09 percent. In other markets of Asia, Japan’s Nikkei, China’s Shanghai Composite, Hong Kong’s Hang Seng and South Korea’s Kospi were in profit.
There was a mixed trend in the major markets of Europe during afternoon trading. American markets were on the rise on Friday. Nair said investors are evaluating their investments in stocks and capital outflows by foreign institutional investors have increased. Amid rising global tensions, rising oil prices have become another challenge for the domestic economy in the short term. According to stock market data, foreign institutional investors sold shares worth Rs 9,896.95 crore on Friday. Whereas domestic institutional investors bought shares worth Rs 8,905.08 crore.