Indian stocks markets declined for a straight second session on Monday, with Nifty touching its lowest level in 11 months, as rupee extended slide against the US dollar.
The benchmark BSE Sensex plunged 1.72 percent, or 320.19 points, to 18,277.99. The 50 share NSE Nifty fell 1.90 percent, or 104.85 points, to 5,403.00.
Markets opened on a weak note, tracking negative cues from Asian peers. Sensex and Nifty extended slide for a second straight session after tumbling on Friday as rupee plunged to a record low of 62.70 against dollar in early trade on Monday, breaching its earlier all-time low of 62.03 recorded on Friday.
Indian markets had declined 10 out of last 14 sessions as growth concerns and tumbling rupee continued to weigh on the sentiment. The Indian central bank recently cut its growth forecast for 2013-14 to 5.5 percent, down from its prior estimate of 5.7 percent provided in May
Foreign investors sold around $11.6 billion of Indian debt and equities in the last three months due to fears over economic growth as Asia’s third largest economy grew at its slowest pace in a decade during the 2012-13 financial year.
“The market is questioning the effectiveness of policy makers’ moves and the options available to them. Earlier, the government said it had a grand plan. This is what the market expected, but the final measures disappointed,” Priyanka Kishore, a strategist at Standard Chartered Plc in London, told Bloomberg.
All the 13 BSE sectoral indices ended with losses except metal and IT sectors. Auto sector plunged 3.10 percent and healthcare declined 2.45 percent, while consumer durables and FMCG sectors slipped 2.34 percent and 2.27 percent respectively.
Banking sectors tumbled 3.86 percent to 10384.10. Axis Bank plunged 7.16 percent and Yes Bank declined 6.94 percent, while Canara Bank slipped 6.36 percent.
The overall market breadth is negative with 898 advanced against 1391 declines on the BSE.
Meanwhile, Asian stock markets end mixed as downbeat trade balance data from Japan and concerns over Federal Reserve’s asset buying program dampened sentiment. Japan's benchmark Nikkei 225 gained 0.79 percent and China's Shanghai Composite rose 0.83 percent, while Hong Kong's Hang Seng declined 0.24 percent and South Korea's KOSPI fell 0.13 percent.
To report problems or to leave feedback about this article, e-mail:
To contact the editor, e-mail: