Mumbai: Market benchmark BSE Sensex on Monday tanked around 306 points to close at over two-month low hit by a carnage in HDFC twins and FMCG stocks amid weak global trends, Stock markets extended their losses for a third straight day with cumulative losses of 3.05 per cent or 1,184.15 points since July 18.
The 30-share index on Monday cracked 305.88 points or 0.80 per cent to settle at 38,031.13, a level not seen since May 17. The broader NSE Nifty sank 82.10 points 0.72 per cent to close at over two-month low of 11,337.15. Since Thursday last, the 50-share index has dropped by 3.03 per cent or 350 points.
Unabated foreign fund outflows and a depreciating rupee too weighed on investor sentiment here, traders said. HDFC and HDFC Bank were the biggest losers in the Sensex pack, plunging 5.09 per cent and 3.32 per cent, respectively, after the private bank reported a rise in non-performing assets and a moderation in loan growth.
During the quarter, gross NPAs rose to Rs 11,768.95 crore which is 1.40 per cent of the total advances, compared with Rs 9,538.62 crore which was 1.33 per cent in the same quarter 2018-19 fiscal. The bank also increased its provisions for the NBFC sector.
Among other major losers, Kotak Bank declined by 3.08 per cent while SBI and Bajaj Finance fell up ti 2.21 per cent. FMCG stocks ITC and HUL declined by 1.47 per cent and 2.67 per cent on weak sentiment after deficient monsoon rains. M&M, PowerGrid, L&T and Tech Mahindra lost up to 1.15 per cent.
Yes Bank was the top gainer, surging 9.49 per cent; followed by Vedanta, RIL, Asian Paints, Maruti and Sun Pharma, ending up to 3.85 per cent higher.
"Market entered into a bearish phase as investors turned sellers due to concerns over extension of economic slowdown and weak corporate earnings hurting the sentiment. This correction has expanded to large caps which until now were attracting FII inflows, but concerns over tax and muted Q1 results will continue to impact," Vinod Nair, Head of Research, Geojit Financial Services.
Sunil Sharma, Chief Investment Officer, Sanctum Wealth Management also noted that the focus of the selling has moved to quality large caps, which had been largely insulated to the selling to date.
On a net basis, foreign institutional investors sold equities worth Rs 950.15 crore, while domestic institutional investors purchased shares to the tune of Rs 733.92 crore, provisional data available with stock exchanges showed Friday. In July so far, FPIs have withdrawn more than Rs 7,700 crore from stocks after the government's super-rich tax proposal.
Sectorally, BSE finance, FMCG, bankex and realty indices cracked up to 2.28 per cent. While, BSE energy, metal, oil and gas, telecom and basic materials indices ended up to 1.92 per cent higher.
Broader BSE midcap and smallcap indices settled up to 1.15 per cent lower. Negative cues from other Asian markets too dampened the sentiment here, traders said.
Elsewhere in Asia, Shanghai Composite Index, Hang Seng, Kospi and Nikkei ended significantly lower on diminishing hopes of a deep rate cut of a half percentage point by the US Federal Reserve this month. On the currency front, the Indian rupee depreciated 17 paise to 68.97 against the US dollar (intra-day).
Meanwhile, the global oil benchmark Brent crude futures soared 2.15 per cent to USD 63.82 per barrel after Iran's Revolutionary Guards Friday confiscated a British tanker in the strategic Strait of Hormuz for breaking "international maritime rules".
