Mumbai, Sep 30 (PTI) Equity benchmark indices Sensex and Nifty tumbled nearly 1.5 per cent on Monday due to heavy selling in banking, finance and auto stocks amid rising geopolitical risks in the Middle East and weakness in Japanese markets.
Besides, profit-taking in frontline stocks like Reliance Industries after a record-breaking rally and foreign fund outflows added to the gloom, analysts said.
Declining for the second straight session, the BSE Sensex tumbled 1,272.07 points or 1.49 per cent to settle at 84,299.78. During the day, it plunged 1,314.71 points or 1.53 per cent to 84,257.14.
A total of 2,223 stocks declined, 1,819 advanced and 151 remained unchanged on the BSE.
The NSE Nifty tanked 368.10 points or 1.41 per cent to 25,810.85.
“Nifty-50 had its worst day in nearly two months on Monday fuelled by weak Asian markets (led by Japan), rising tensions in the Middle East and fear of funds moving to China based on recent measures taken by its government,” Deepak Jasani, Head of Retail Research, HDFC Securities, said.
From the 30 Sensex firms, Reliance Industries and Axis Bank declined over 3 per cent each. ICICI Bank, Nestle, Tech Mahindra, Mahindra & Mahindra, Maruti, Bajaj Finserv, State Bank of India and Tata Motors were the other major laggards.
In contrast, JSW Steel, NTPC, Tata Steel, Titan and Asian Paints were the gainers.
“This sharp decline was primarily driven by profit booking after recent highs and heightened geopolitical tensions that have unsettled investor sentiment. The biggest drag on the index was Reliance Industries, which fell by 3 per cent, significantly contributing to the overall market decline,” Vikram Kasat, Head – Advisory, PL Capital – Prabhudas Lilladher, said.
The BSE midcap gauge declined 0.28 per cent, while smallcap index climbed 0.07 per cent.
Among the indices, auto tumbled 1.91 per cent, bankex (1.82 per cent), realty (1.80 per cent), financial services (1.40 per cent), services (1.22 per cent) and telecommunication (1.19 per cent).
Metal and commodities were the winners.
“Global markets turned topsy-turvy under the threat of rising geopolitical risk in the Middle-East and plausible increase in Yen interest rate which can reduce cross country investments in equity.
“On the contrary, the Chinese market had a resurgence due to a large stimulus package and cheap valuation. India also weakened under the global pressure and premium valuation while metals are expected to outperform in the near-term,” said Vinod Nair, Head of Research, Geojit Financial Services.
In Asian markets, Japan’s benchmark Nikkei 225 index tanked nearly 5 per cent on Monday after its ruling Liberal Democrats chose former Defence Minister Shigeru Ishiba on Friday to succeed Prime Minister Fumio Kishida.
Ishiba has earlier supported the Bank of Japan’s moves to raise interest rates from the near-zero level and reportedly hinted at possible corporate tax hikes.
Markets in Seoul settled with deep cuts.
On the other hand, Shanghai and Hong Kong ended sharply higher as the Chinese government, last week, announced fresh stimulus to boost its weakening economy, especially the property and financial markets. European markets were also trading sharply lower in mid-session deals. The US markets ended on a mixed note on Friday.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,209.10 crore on Friday, according to exchange data.
Global oil benchmark Brent crude declined 0.19 per cent to USD 71.84 a barrel.
On Friday, the BSE benchmark Sensex declined 264.27 points or 0.31 per cent to settle at 85,571.85.
The Nifty dipped 37.10 points or 0.14 per cent to 26,178.95 after rising 61.3 points or 0.23 per cent to an all-time intra-day peak of 26,277.35. PTI SUM SUM BAL BAL BAL
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