Sensex nosedives 1,394 points in early trade; Nifty tanks to 15,800 level

The Sensex further plummeted over 1,394 points in early trade on Monday, while the Nifty slumped to the 15,800 level, tracking weak global markets and unrelenting foreign fund outflows.

Weakness in index majors Reliance Industries and ICICI Bank also weighed on the domestic equity markets. The 30-share BSE benchmark was trading 1,394.17 points lower at 52,909.27. The Nifty tanked 399.55 points to 15,802.25.

All the 30-share Sensex pack of firms were trading lower in early trade, with Bajaj Finserv, Bajaj Finance, ICICI Bank, State Bank of India, Reliance Industries, Kotak Mahindra Bank, Tech Mahindra and IndusInd Bank emerging as the major laggards. The BSE benchmark index had ended 1,016.84 points or 1.84 per cent lower at 54,303.44 on Friday. The broader NSE Nifty plunged 276.30 points or 1.68 per cent to 16,201.80.

Elsewhere in Asia, markets in Seoul, Tokyo, Hong Kong and Shanghai were trading with deep cuts in mid-session deals.

Stock exchanges in the US ended sharply lower on Friday.

“The near-term market trend is weak. The May US inflation print at 8.6 per cent against the market expectation of 8.3 per cent is likely to turn the Fed more hawkish. “Such a scenario would be negative for risky assets like equity, particularly in the context of declining global growth. The Indian market will stabilize only when the US market stabilises,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. Meanwhile, international oil benchmark Brent crude fell 1.37 per cent to USD 120.31 per barrel.

Foreign institutional investors (FIIs) remained net sellers in the capital market, as they sold shares worth Rs 3,973.95 crore on Friday, as per exchange data.

(Except for the headline, this story has not been edited by The Federal staff and is auto-published from a syndicated feed.)