MUMBAI — Equity benchmark Sensex cracked over 1,000 points to dive below the
77,000 level on Monday, tracking heavy selling in global equities and a spike
in international crude prices.
A strong US jobs data that dampened early rate cut
expectations, the rupee logging its steepest single-day fall in nearly two
years and unabated foreign fund outflows also dampened investors' sentiment.
Falling for the fourth straight session, the 30-share BSE
benchmark Sensex tanked 1,048.90 points or 1.36 per cent to finally settle at
76,330.01. During the day, it plunged 1,129.19 points or 1.45 per cent to
76,249.72.
The NSE Nifty dropped 345.55 points or 1.47 per cent to
close at 23,085.95.
From the 30-share blue-chip pack, Zomato cracked nearly 7
per cent. Power Grid, Adani Ports, Tata Steel, NTPC, Tata Motors, Tech
Mahindra, Mahindra & Mahindra, Asian Paints, Sun Pharma and UltraTech
Cement were the other major laggards.
In contrast, Axis Bank, Hindustan Unilever, Tata
Consultancy Services and IndusInd Bank were the gainers.
"The global markets witnessed a significant
sell-off, prompting a similar response in domestic markets due to strong US
payroll data suggesting fewer rate cuts in 2025. This has strengthened the
dollar, driven up bond yields, and made emerging markets less attractive.
Recent GDP downgrades and slowing earnings amidst higher valuations are
weighing heavily on market sentiment," Vinod Nair, Head of Research,
Geojit Financial Services, said.
In Asian markets, Seoul, Shanghai and Hong Kong settled
lower. Markets in Japan were closed for a holiday.
European markets were quoting in the red. US markets
ended in the negative territory on Friday.
Foreign Institutional Investors (FIIs) offloaded equities
worth INR 2,254.68 crore on Friday, according to exchange data. Foreign
investors have withdrawn INR 22,194 crore from Indian equities so far this
month.
"US imposing sanctions on Russian oil exports pushed
the rupee to a fresh low against the dollar, which in turn triggered massive
correction in domestic equity markets as overseas investors continued to desert
the local share market. Wide-spread selling across the sectors fuelled along
with massive exits in mid and smallcap stocks further worsened the sentiment.
"Rising crude oil prices would raise concerns of a
spike in domestic inflation, which could further delay any rate cut hopes from
the RBI in the near to medium term," Prashanth Tapse, Senior VP (Research),
Mehta Equities Ltd, said.
Global oil benchmark Brent crude jumped 1.43 per cent to
USD 80.90 a barrel.
The rupee logged its steepest single-day fall in nearly
two years and ended the session 58 paise down at its historic low of 86.62
(provisional) against the US dollar on Monday.
India's industrial production (IIP) growth accelerated to
a six-month high of 5.2 per cent year-on-year in November 2024, riding on the
increased festive demand and pick up in manufacturing sector, according to the
official data released on Friday.
The BSE benchmark Sensex declined 241.30 points or 0.31
per cent to settle at 77,378.91 on Friday. The Nifty dropped 95 points or 0.40
per cent to 23,431.50.
