Sensex, Nifty tank over 1% on weak global cues

Mumbai : Benchmark Sensex tanked nearly 942 points to settle at a three-month low, while Nifty crashed below 24,000 on Monday dragged down by heavy selling in Reliance Industries (RIL) and banking shares and persistent FII outflows.

The 30-share BSE Sensex tumbled 941.88 points or 1.18 per cent to settle at 78,782.24, the lowest closing level since August 6. During the day, it slumped 1,491.52 points or 1.87 per cent to 78,232.60. The NSE Nifty tanked 309 points or 1.27 per cent to close at 23,995.35 with 42 of its constituents ending lower and eight higher. The index tanked 488 points to hit 23,800 level during the day but recovered some of the losses later.

“As expected, India is underperforming its global peers due to excess valuation. The ongoing sell-off has deepened by weak Q2 earnings, dampening investor sentiment. Continued volatility is anticipated in the short-term, as attention shifts to the closely contested US presidential election. “Additionally, key economic events, such as the US Fed and BoE policy decisions, will be critical in shaping market movements,” said Vinod Nair, head (research), Geojit Financial Services.

Uncertainty ahead of US presidential elections on November 5 and expectations of a fresh stimulus package by China to prop up growth triggered selling in Indian stocks, analysts said. Relentless selling by foreign investors also dampened the sentiments in the equity market.

“Markets began the week on a negative note. Persistent foreign fund outflows, coupled with caution surrounding the upcoming US elections, weighed on sentiment,” Ajit Mishra, Sr V-P (research), Religare Broking Ltd.

From the 30-share Sensex pack, Adani Ports, Reliance Industries, Sun Pharma, Bajaj Finserv, NTPC, Tata Motors, Axis Bank and Titan were among the major laggards. Mahindra & Mahindra, Tech Mahindra, State Bank of India, HCL Technologies, Infosys and IndusInd Bank were the gainers. Foreign institutional investors (FIIs) offloaded equities worth Rs 211.93 crore on Friday, according to exchange data. The BSE smallcap gauge fell by 1.65 per cent and midcap index tanked 1.31 per cent.