Mkts Further Slip For 6th Session

This phase is marked by significant corrections in the broader market due to premium valuations. There is notable global arbitrage activity, with Chinese markets attracting substantial inflows driven by its attractive valuations and stimulus measures, said Vinod Nair, head (research) at Geojit Financial Services

Mumbai: Equity benchmark indices Sensex and Nifty extended their losing streak for the sixth straight session and settled sharply lower on Monday dragged down by heavy selling in bellwether stocks amid mixed global trends and outflow of foreign funds.

The BSE Sensex tumbled 638.45 points or 0.78 per cent to settle at 81,050. During the day, it plummeted 962.39 points or 1.17 per cent to 80,726.06. The NSE Nifty slumped 218.85 points or 0.87 per cent to end at 24,795.75. Market capitalisation (mcap) of BSE-listed companies dropped by Rs8.90 lakh crore to Rs4,51,99,444.70 ($5.38 trillion).

“The Indian markets have entered a consolidation phase with high risk of underperforming to Asian peers. This phase is marked by significant corrections in the broader market due to premium valuations. There is notable global arbitrage activity, with Chinese markets attracting substantial inflows driven by its attractive valuations and stimulus measures,” Vinod Nair, head (research) at Geojit Financial Services, said.

“With the inflation rate at 3.65 per cent in August, falling below the 4 per cent target, there is cautious optimism despite ongoing concerns about food inflation and crude prices due to Middle East tensions. The favourable monsoon and the Fed’s rate cut provide the RBI with ample opportunity to adjust its policy and implement rate cuts in the foreseeable future. This is expected to support the market in the long run by providing liquidity and bolstering the economy’s growth trajectory,” added Anwin Aby George, Research analyst at Geojit Financial Services.

The BSE midcap gauge dropped 1.85 per cent and smallcap index plummeted 3.27 per cent.

“Investors are reassessing their portfolio positions and FIIs outflows are exacerbated. Amid escalating geopolitical tensions, the surging oil prices poses a further challenge to the domestic economy in the short-term,” Nair added.

From the 30 Sensex firms, Adani Ports & Special Economic Zones, NTPC, State Bank of India, PowerGrid, IndusInd Bank, Axis Bank, HDFC Bank, Titan and UltraTech Cement were the major laggards. Mahindra & Mahindra, ITC, Bharti Airtel, Infosys, Bajaj Finance, Tata Consultancy Services and Tech Mahindra defied the trend. Sector-wise, utilities tanked by 3.63 per cent, while power went down 3.14 per cent, and services slid by 3.12 per cent. Commodities fell 2.54 per cent, while telecommunication declined by 2.49 per cent, energy plummeted by 2.46 per cent, and oil & gas and industrials lost 2.38 per cent each. On the other hand, IT and teck were the only gainers.

Meanwhile, shares of Ola Electric Mobility plunged over 8 per cent to Rs90.82 apiece on the BSE amid reports of service quality issues of its electric scooters and its CEO’s spat on social media. However, stock of Heidelberg Cement India ended 4 per cent higher following reports that the Adani Group is in talks to acquire Indian operations of Germany’s Heidelberg Materials. The proposed buyout of Heidelberg’s India unit will be led by billionaire Gautam Adani-led Ambuja Cements and could be worth around $1.2 billion (Rs10,000 crore), the reports added. During the day, shares of the company rallied 17.95 per cent to hit its 52-week high of Rs257.85 apiece on the BSE. Traders also kept an eye on the RBI’s monetary policy to be announced on Wednesday.

Investors poorer byRs 9 lakh cr

The market capitalisation (mcap) of BSE-listed companies dropped by Rs8.90 lakh crore to Rs4,51,99,444.70 (Rs451.99 lakh cr or $5.38 trn)