New Delhi : Benchmark stock indices in India fell on Monday, extending their decline for the seventh straight session and hitting new multi-month lows. IT stocks are seen falling due to low expectations of Fed rate cut in December.
The Sensex closed at 77,339.01, down 241.30 points or 0.31 per cent, while the Nifty closed at 23,453.80, down 78.90 points or 0.34 per cent. According to NSE data, among the sectoral indices, Nifty IT, Media and Oil & Gas were the biggest losers, while Metal, PSU Bank and Realty were the biggest gainers.
Vinod Nair, head of research at Geojit Financial Services, said, “Market consolidation continued; A weak rupee due to slowdown in earnings growth and inflation weighed on sentiment. “IT stocks reacted negatively today due to low expectations of Fed rate cut in December, which may delay spending in the BFSI segment.”
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The continued decline in the indices was due to a number of factors, including relatively weak second quarter earnings, continued foreign fund inflows and rising domestic inflation – both retail and wholesale. Shrikant Chauhan, Head of Equity Research, Kotak Securities said, “We believe the current market structure is weak but oversold; So we can expect a quick comeback rally from the current levels.”
Senior Vice President, Research Wing, Religare Broking advised investors to maintain a cautious approach on the index and focus selectively on stock-specific opportunities. Indian stock markets remained closed on Friday also on the occasion of Guru Nanak Dev Jayanti.
–with agency input
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