While rupee hit a two year low tracking global cues and monsoon concerns, stock market indices extended their losing streak to sixth consecutive trading session on Monday. The BSE Sensex closed below the 25000-mark with a loss of more than one percent, recording its 15-moth low.
The rupee ended at 66.83 a dollar after touching an intra-day low of 66.85 compared to its previous day’s close of 66.46.
The Sensex meanwhile ended at 24893.81 with a loss of 308.09 or 1.22 per cent. It also touched a low of 24851.77 intra-day.
Among the broader indices BSE 100 was down by 1.43 per cent and BSE 200 lost 1.49 per cent. While mid-cap stocks ended in the negative territory with a loss of 2.19 per cent, small cap lost 1.76 per cent.
On the National Stock Exchange (NSE), the 50-share Nifty dipped by 96.25 points or 1.26 per cent at 7558.80.
“Domestic stock markets opened with a positive note tracking the mixed global cues. But concerns on the Chinese front and weak monsoon forecast dampened the consumers’ sentiment,” said Alex Mathews, Head Research, Geojit BNP Paribas Financial Services.
“Global sentiments have taken a big precedence over domestic factors,” said Vijay Singhania, Founder-Director, Trade Smart Online, a leading discount broking firm. “Next two weeks, there’s a lot of potential market-moving news, including the possibility of a U.S. interest-rate hike,” he added.
Moreover, markets are increasingly getting concerned about the slowdown in the Chinese economy and “we believe that the sell-off in the domestic markets will continue until China stabilises or clarity emerges on U.S. interest rates. But we believe the pressure will be high on U.S, Fed not to hike the rates,” said Mr. Singhania.
“On the positive side, as indicated by policy makers, the reduction in repo rate in India is overdue and may be announced any time either on September 29 or before that,” said Mr. Singhania, adding, “Lower cash volume on Monday is an advance indication as to completion of correction.” This week closing will be very crucial to assess the future trend.