MUMBAI (Reuters) - The Nifty hit a new 19-month low on Monday as concerns about the global economy are mounting after crude fell to its lowest since 2003, while data showed the country's exports shrunk for a thirteenth straight month.
The fall in crude prices and volatility in China's markets have hit India and other emerging markets hard this month, with the Nifty headed for its third consecutive daily fall. The index is down now over 18 percent from its record high hit in March 2014.
Brent crude prices fell on Monday to as low to $27.67 a barrel early on Monday, its lowest since 2003 after international sanctions against Iran were lifted over the weekend, allowing Tehran to return to an already over-supplied oil market.
Domestic data showed India's merchandise exports fell 14.75 percent in December from a year earlier, as orders from the United States and Europe shrank and exporters grappled with a competitively weaker Chinese yuan.
"A good amount of capitulation has taken place today, this sort of capitulation would ultimately make a bottom in the market," said Deven Choksey, managing director at KR Choksey Securities.
The Nifty was down 0.29 percent after falling as much as 0.78 percent to its lowest since June 5, 2014.
The Sensex was down 0.32 percent after losing as much as 0.76 percent to its lowest since May 30, 2014.
Both indexes are headed for their third straight session of losses.
Energy stocks were the biggest drag on the index. Shares in Reliance, ONGC, BPCL and Cairn India were trading between 1.5 percent and 4 percent lower on weak crude prices.
Financial stocks such as Housing Development Finance Corp and HDFC Bank down 0.95 percent continued to feel the pressure on worries of a global slowdown. Housing Development Finance was down 1.3 percent, while HDFC Bank lost 0.95 percent.
Drug maker Wockhardt Ltd recovered after falling as much as 11 percent after the management said it would resolve compliance issues at its Shendra plant within two months.
(Reporting by Karen Rebelo in Mumbai; Editing by Anand Basu)
