The BSE Sensex on Monday by 309.59 points below 35K level to 34,757.16 as investor caution that Union Budget could flare up inflation and prompt the central bank to raise interest rates soon amidst weak global cues.
The Nifty of National Stock Exchange (NSE) too sank by 94.05 points to 10,666.55.
The stock market remained under pressure for the fifth straight session A cautious stance at the RBI would increase the probability of interest rate increases in the coming fiscal year.
The stock market extended Friday’s sharp losses amid global sell-off and as investor sentiment got hit after Finance Minister Arun Jaitley had announced bringing the long term capital gains (LTCG) tax in Union Budget 2018.
The day opened on a negative note, slipped by 348 points below 35K level to 34,718.85. It dropped by 546 points to 34,520.80, a days low, in late trade it slightly improved from day low figure but finished negative at 34,757.16, sliding by 309.59 points from its last close.
The Nifty recorded days high and low at 10,702.75 and 10,586.80 points respectively.The sectoral indices that fell were Capital Goods, Bankex, Finance and Realty however buying in Auto, Technology and FNCG capped from further lost, broker informed.Key indices opened on a weaker note tracking slide in Asian markets and sharp decline in US stocks.
The S&P BSE Mid-Cap index rose by 0.08 pc. The S&P BSE Small-Cap index fell 0.03 pc. Both these indices outperformed the Sensex.The breadth, indicating the overall health of the market, was negative. On the BSE, 1,674 shares fell and 1,131 shares rose. A total of 171 shares were unchanged.
The total turnover on BSE amounted to Rs 4747.97 crore, compared with the turnover of Rs 5944.92 crore registered during the previous trading session.
Global stocks declined after a stronger-than-expected US jobs report sent bond yields surging. Also, the trading of US index futures showed a weak opening of US stocks on February 5.
The sectoral indices that declined were Capital Goods by 2.65 pc, Finance 1.53 pc, Bankex by 1.11 pc Materials by 1.01 pc and Realty by 0.36 pc.The indices that rose were Technology by 1.68 pc, Auto by 0.73 pc and FMCG by 0.20 pc.
Capital goods stocks declined. L&T was down by 3.49 pc, ABB India by 3.1 pc,Siemens by 1.7 pc, Thermax by 2.18 pc and BEML by 1.68 pc. FMCG major Hindustan Unilever fell 0.93 pc at Rs 1,359.95.
Cigarette major ITC advanced 1.34% at Rs 279. Index heavyweight Reliance Industries (RIL) rose 0.32 pc at Rs 908.60. Bosch advanced 2.87 pc at Rs 19,900 after net profit rose 28.79 pc to Rs 281.01 crore on 4.85 pc growth in total income to Rs 3174.18 crore in Q3 December 2017 over Q3 December 2016. The result
was announced during market hours on February 5.
On the macro front, Markit Economics data of a monthly survey on the performance of India’s services sector in January 2018 showed that the Nikkei India Services PMI increased to 51.7 in January from 50.9 in December 2017.