Stock Market: Sensex Tanks 861 Points, Nifty Settles Just Above 17,300; Reliance Sinks 1 Per Cent After AGM

Stock Market: Sensex Tanks 861 Points, Nifty Settles Just Above 17,300; Reliance Sinks 1 Per Cent After AGM

Sensex and Nifty, the two key equity benchmarks, on Monday, declined over 1 per cent each in sync with weak global markets and a sharp dip in IT stocks. The two domestic indices were tracking weak global sentiments due to aggressive monetary policy stance by US Fed spooks investors.

The BSE benchmark Sensex tanked 861 points (1.46 per cent) to settle at 57,972.62. During the day, it tumbled 1,466 points to 57,367. On the other hand, the NSE Nifty fell 246 points (1.4 per cent) to 17,312.

On the 30-share Sensex platform, Tech Mahindra was the biggest loser, shedding 4.57 per cent, followed by Infosys, Wipro, HCL Technologies, Tata Consultancy Services, Kotak Mahindra Bank, Tata Steel, Axis Bank, ICICI Bank, and State Bank of India. On the flip side, Maruti, Nestle, Asian Paints, ITC, M&M, and Hindustan Unilever were among the gainers.

Among specific stocks, RIL stock ended lower by 0.7 per cent on the BSE. The 45th Annual General Meeting (AGM) failed to lift shares of Reliance Industries, even after so many announcements were made by RIL Chairman Mukesh Ambani.

In the broader market, the BSE MidCap and SmallCap indices closed up to 0.8 per cent down.

Sectorwise, the Nifty FMCG index was the sole gainer, up 0.3 per cent. On the flipside, losses were led by the Nifty IT index (down 3.5 per cent), and the Nifty Bank index (down 2 per cent).  

In the previous session on Friday, the Sensex closed with marginal gains of 59.15 points to end at 58, 833 and the Nifty gained 36 points to 17,558.

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In Asian markets, Seoul, Tokyo, and Hong Kong settled lower, while Shanghai ended marginally higher. Stock markets in Europe were trading lower during mid-session deals. The US markets had ended significantly lower on Friday.

“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. 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.

Meanwhile, the international oil benchmark Brent crude climbed 0.79 per cent to 101.8 per barrel.

Foreign institutional investors (FIIs) offloaded shares worth Rs 51.12 crore on Friday, according to exchange data.