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Major benchmark indices started the week on a gloomy note and ended Monday’s session with heavy losses ahead of key CPI inflation data in both India and the United States on Tuesday. The BSE Sensex plunged 617 points to end at 73,503. The Nifty50 lost 161 points to close at 22,333.
Most large-cap companies closed in the red, with Tata Steel, Power Grid, SBI, HUL, Tata Consumer, Bajaj Auto, IndusInd Bank, Tata Motors and NTPC leading the decline with losses of 1-3 per cent.
The fall worsened after the Supreme Court dismissed the SBI’s petition, ordering it to obtain details of the electoral bonds by Tuesday, March 12. Shares lost nearly 2 percent. Read here
Sentiment also soured in broader markets after reports said Sebi may review rules for mutual funds investing in small-cap stocks amid concerns of overheating in this segment.
As a result, the BSE Smallcap index fell by 2 percent. The BSE MidCap index closed down 0.24 per cent.
Among sectors, Nifty Healthcare was the only gainer, which closed up 0.45 per cent. Nifty Media lost 3 percent. Pockets of Nifty Bank, PSB, Metal, Realty and Oil & Gas ended down more than 1 per cent.
Vinod Nair, head of research at Geojit Financial Services, said: “Continued sell-off in global markets due to uncertainty over rate cuts impacted domestic market sentiment, which is currently at an overbought level.”
He further said: “Better-than-expected US non-farm payrolls data and caution ahead of the release of US inflation data tomorrow kept investors on edge.”
The broader market continued to underperform due to valuation concerns, while investors are rebalancing their portfolios to include safe-haven assets such as gold, he added.
Global signals
In Asia, Japan’s Nikkei index fell below the 39,900 mark after falling nearly 2.40 percent on Monday morning. South Korea’s Kospi started the week in the red, down 0.21 percent.
Meanwhile, in the United States, the S&P 500 index fell 33.67 points, or 0.65 percent, and the Nasdaq composite fell 166 points, down 1.16 percent from its previous close.