 "Equity markets plunge on bearish global cues")
Indian equity markets plunged on Monday following bearish global cues, coupled with profit booking and lower crude oil prices.
Both the key equity indices traded with losses of more than a percentage each during the mid-afternoon trade session, as heavy selling pressure was witnessed in automobile, banking and capital goods stocks.
The wider 51-scrip Nifty of the National Stock Exchange (NSE) dipped by 130.80 points or 1.48 per cent to 8,735.90 points.
The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 28,481.09 points, traded at 28,431.53 points (at 1.00 p.m.) – down 365.72 points or 1.27 per cent from its previous close at 28,797.25 points.
The Sensex has so far touched a high of 28,481.11 points and a low of 28,251.31 points during the intra-day trade.
The BSE market breadth was skewed in favour of the bears – with 1,818 declines and 642 advances.
On Friday, both the key Indian indices were dragged lower by profit booking and negative global markets.
The barometer index had edged down 248.03 points or 0.85 per cent, while the NSE Nifty fell by 85.80 points or 0.96 per cent.
Initially on Monday, the benchmark indices opened with heavy losses – down almost two per cent each – following negative global cues.
Besides, caution ahead of the release of major macro-economic data – the Index of Industrial Production (IIP) for July and inflation figures for August – which are scheduled to be released later during the day, weighed heavy on the indices.
Moreover, profit booking and lower crude oil prices also added to the download trajectory.
According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, while the CNX Nifty faced selling pressure tracking bearish global cues, the Bank Nifty also traded down on selling pressure.
"IT stocks traded firm supported by appreciation in the US dollar against the Indian rupee. Banking, pharma and auto stocks are trading down on selling pressure," he said.
"FMCG (fast moving consumer goods) stocks traded down on profit booking. Aviation stocks traded with sideways to firm sentiments tracking lower crude oil prices."
