Market falls over 1.5 per cent; rupee hits new low

NEW DELHI: India’s equity market remained under tremendous pressure on Monday, with benchmark indices - Sensex and Nifty - tumbling between 1.5% and 2% again on Monday. The S&P BSE Sensex fell over 1,000 points intra-day to hit a low of 57,038, while the broader Nifty50 gave up 17,000-mark intra-day to hit a low of 16,978.

However, late-minute buying in IT stocks like Infosys, HCL Tech, TCS and Wipro helped the indices. By closing, Sensex was at 57,145, down 954 points,  and the Nifty was at 17,016, down 311 points. Rupee on Monday closed at a fresh record low of 81.62 against US dollar after depreciating to an all-time low of 81.6526 during the day.

In the four sessions, the bloodbath at Dalal Street has wiped out more than Rs 13.3 lakh crore of investors’ wealth as market capitalisation of all the BSE listed entities has come down to Rs 270 lakh crore on Monday, from nearly Rs 283.50 lakh crore, in past four sessions.

India has of late started mirroring global markets. So far this year, most global indices have fallen 15-20%, while Sensex and Nifty have managed to remain flat. While the US Fed’s 75 bps rate hike that came last week was anticipated, the hawkish stance indicating 125 bps rate hikes in the next meets by December 2022   has spooked investors.

The rate hike by the Fed and other central banks, which is aimed towards controlling the current high rate of inflation, has raised global growth concerns. Experts believe the speed with which central banks across the globe are hiking interest rates, investors are worried that slackening growth would push key economies into recession.

Then there are related negative cues such as weakening of rupee, strengthening of US bond-yields, foreign fund outflow, upcoming RBI monetary policy committee (MPC) meeting and high valuation of Indian equity market. The escalation in the Russia-Ukraine dispute has also emerged as a key negative factor.

Siddhartha Khemka, head - retail research, Motilal Oswal Financial Services, said the overall narrative of the market remains weak, especially following the cautiousness ahead of the RBI MPC due later this week. RBI Governor Shaktikanta Das will announce the MPC decision on September 30. There is now consensus among experts that RBI will go for a 50bps rate hike. 

NEW DELHI: India’s equity market remained under tremendous pressure on Monday, with benchmark indices - Sensex and Nifty - tumbling between 1.5% and 2% again on Monday. The S&P BSE Sensex fell over 1,000 points intra-day to hit a low of 57,038, while the broader Nifty50 gave up 17,000-mark intra-day to hit a low of 16,978. However, late-minute buying in IT stocks like Infosys, HCL Tech, TCS and Wipro helped the indices. By closing, Sensex was at 57,145, down 954 points,  and the Nifty was at 17,016, down 311 points. Rupee on Monday closed at a fresh record low of 81.62 against US dollar after depreciating to an all-time low of 81.6526 during the day. In the four sessions, the bloodbath at Dalal Street has wiped out more than Rs 13.3 lakh crore of investors’ wealth as market capitalisation of all the BSE listed entities has come down to Rs 270 lakh crore on Monday, from nearly Rs 283.50 lakh crore, in past four sessions. India has of late started mirroring global markets. So far this year, most global indices have fallen 15-20%, while Sensex and Nifty have managed to remain flat. While the US Fed’s 75 bps rate hike that came last week was anticipated, the hawkish stance indicating 125 bps rate hikes in the next meets by December 2022   has spooked investors. The rate hike by the Fed and other central banks, which is aimed towards controlling the current high rate of inflation, has raised global growth concerns. Experts believe the speed with which central banks across the globe are hiking interest rates, investors are worried that slackening growth would push key economies into recession. Then there are related negative cues such as weakening of rupee, strengthening of US bond-yields, foreign fund outflow, upcoming RBI monetary policy committee (MPC) meeting and high valuation of Indian equity market. The escalation in the Russia-Ukraine dispute has also emerged as a key negative factor. Siddhartha Khemka, head - retail research, Motilal Oswal Financial Services, said the overall narrative of the market remains weak, especially following the cautiousness ahead of the RBI MPC due later this week. RBI Governor Shaktikanta Das will announce the MPC decision on September 30. There is now consensus among experts that RBI will go for a 50bps rate hike.