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The benchmark indices pared all its gains to trade sharply lower tracking muted trend in Asian markets after the US dollar nudged up to a six-month high as investors awaited more clarity on President-elect Donald Trump's policies for United States. Back home, investors continued to gauge the impact of demonetisation on the economy.
At 10:48 am, the S&P BSE Sensex was trading at 25,888, down 261 points, while the broader Nifty50 was ruling at 7,977, down 96.55 points.
"The Nifty50 has next support near to 8,000 zones and below that it may start the fresh decline towards 7,850 zones. On the upside, it has hurdle near to 8,150 zones and above that only it may negate immediate negative trend for a bounce back move towards 8,220-8,250 zones," said brokerage Anand Rathi in a technical note.
Broader market underperformed the headline indices with BSE Midcap and BSE Smallcap index down 2% each.
The India Volatility Index (VIX), a gauge of the market's short-term expectation of volatility, surged 8% to 19.5975.
Meanwhile, Rupee extended losses to hit its lowest level since June 1 (68.24) against dollar as sentiment turned bearish on combination of growing US rate hike expectations and stunning dollar run.
Meanwhile, Rupee extended losses to hit its lowest level since June 1 (68.24) against dollar as sentiment turned bearish on combination of growing US rate hike expectations and stunning dollar run.
Stocks and sectors
The S&P BSE Realty was the top sectoral loser and lost over 3% led by losses in Oberoi Realty (4.64%), DLF (4%) and NBCC (2%).
BSE Bankex, BSE Finance and BSE Consumer Discretionary Goods & Services were other sectoral losers and slipped 1% each.
Power Grid was the top loser (down 2%) on Sensex, while Eicher Motors (down 2%) was the worst-performing stock on Nifty.
Among the gainers, Techno Electrical advanced over 6% after the company reported over 31% year-on-year jump to Rs 44.94 crore in net profit in the September quarter.
India Cements gained 3% after the company reported a 62% jump in standalone net profit at Rs 62.41 crore in the September quarter. It had posted a net profit of Rs 38.50 crore in the year-ago period.
PM Modi signals rate cut
Prime Minister Narendra Modi on Sunday claimed banks had received deposits worth Rs 5 lakh crore since he announced the demonetisation scheme on November 8, and would soon give loans at cheaper interest rates.
According to Indian Banks’ Association, the customers have deposited over Rs 6 lakh crore since November 10, while withdrawals, including exchange of old note, came in above Rs 1.35 lakh crore till end of November 18.
Dual control issue on GST unresolved
Stalemate between the Centre and states over administrative control under the proposed goods and services tax (GST) regime continued today with an informal meet called by Finance Minister Arun Jaitley failing to break the deadlock.
"The meeting has remained incomplete. Discussions will continue on November 25," Finance Minister Arun Jaitley told reporters after the over three hour long meeting.
Global markets
Asian shares were on the defensive on Monday, undermined by fears that the strength in the US dollar and rising US bond yields since Donald Trump's election to president could accelerate fund outflows from emerging markets.
MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.1%, staying near four-month lows. Japan's Nikkei rose 0.5% as the yen continued to slip against the dollar. China's Shanghai Composite and Hong Kong's Hang Seng index 0.86%, 0.27%, respectively.
Trump's unexpected election victory has led to a major repricing of assets, with investors rushing to buy US stocks and the dollar, while dumping bonds and emerging market assets.
On Friday, US stocks ended lower with healthcare stocks leading the declines, as investors cashed in on a post-election rally and waited for clarity on the next administration's policies.
(With Reuters inputs)
(With Reuters inputs)
