NEW DELHI: Equity indices plunged on Monday with the benchmark BSE sensex falling over 500 points dragged by metal and bank stocks.
The 30-share BSE index fell 525 points or 0.89 per cent to close at 58,491; while the broader NSE Nifty settled 188 points or 1.07 per cent lower at 17,397.
Tata steel was the biggest loser in the sensex pack falling up to 10 per cent future prices for steel making raw materials dropped as China, the world’s top steelmaker, indicated it could expand strict air pollution controls to more cities.
SBI, IndusInd Bank, Dr Reddy’s, HDFC and M&M were the other losers in the sensex pack falling as much as 3.69 per cent.
On the NSE platform, sub-indices Nifty Metal, PSU Bank, Realty and Bank index plunged as much as 6.6 per cent.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, markets are likely to turn volatile from now on.
“Possible tapering timeline from the Fed this week, rising bond yields in the US, strengthening dollar (dollar index above 93) and news of the crisis in the large Chinese real estate developer Evergrande are likely to weigh on markets,” he said.
With valuations in stretched territory, corrections are possible, particularly in the broader market. On the positive side, FIIs continue to buy imparting resilience to markets. But this can quickly change. Investors may adopt a wait-and-watch strategy till clarity emerges, he added.
Meanwhile, foreign institutional investors (FIIs) were net buyers in the capital market as they purchased shares worth Rs 1,552.59 crore on Friday, as per provisional exchange data.
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