Sensex Sinks 204 Points, Nifty Dips 40 Amidst Weak Asian Markets

Early trade on Monday dropped for equity benchmark indices under effect of negative trends in Asian markets and ongoing foreign money outflows. Early trade settled the 30-share BSE Sensex at 79,612.21 after it declined 204.39 points. The Nifty dropped 40.75 points at the same time to score 24,283.10 points.

Among the Sensex participants, Titan, Asian Paints, Adani Ports, Bajaj Finserv, UltraTech Cement, and Maruti were the most important laggards. On the other hand, in this session the winners were Tata Motors, Tech Mahindra, ICICI Bank, and State Bank of India. Seoul and Tokyo were in the green while Shanghai and Hong Kong indexes traded down in the larger Asian markets. On Friday past, the US markets closed with gains.

As American currency and crude oil prices dropped from their high peaks, the rupee rose by five paise to 83.44 against the US dollar in early trade on Monday. Forex traders observed that foreign money inflows further supported investor mood, therefore helping the rupee. Rising five paise from its previous finish, the rupee opened at 83.45 at the interbank foreign currency market and rose to 83.44 against the dollar. Friday the rupee finished at 83.49 versus the US dollar.

Context and Market patterns: The falling equity benchmark indices fit the more general poor patterns seen in Asian markets. The constant drain of foreign money has added to the downward strain. Some equities, like Tata Motors, Tech Mahindra, ICICI Bank, and State Bank of India, have showed resilience in front of the general market collapse despite the downturn. On the other hand, stocks such Titan, Asian Paints, Adani Ports, Bajaj Finserv, UltraTech Cement, and Maruti have suffered notable falls, which adds to the general drop in the Sensex and Nifty.

Under the Asian market scenario, Seoul and Tokyo showed upward tendencies while Shanghai and Hong Kong traded lower. The advances on Friday’s US markets did not convert into a good start for the Indian markets on Monday.

Forex Market Dynamics: Retraction of the American currency and crude oil prices from their recent highs explains the minor appreciation of the rupee against the US dollar in the forex market. Furthermore very important in raising investor mood were foreign money inflows, which helped the rupee. Reflecting a 5 paise rise from its last closing value of 83.49 on Friday, the rupee opened at 83.45 then strengthened to 83.44.

Under sluggish Asian market trends and continuous foreign money withdrawals, the early trading session on Monday showed a cautious stance by investors that resulted in falls in the Sensex and Nifty indices.