Mumbai: There was a big fall in the stock markets on Monday and the BSE Sensex fell by 587 points. Markets softened with losses in HDFC Bank, HDFC, Reliance Industries and Axis Bank amid a weak global trend. The 30-share BSE Sensex closed at 52,553.40, down 586.66 points, or 1.10 per cent.
The Nifty of the National Stock Exchange also closed at 15,752.40 with a dive of 171 points, or 1.07 per cent. HDFC Bank was the biggest loser among the Sensex stocks, falling over three per cent. Apart from this, IndusInd Bank, Axis Bank, HDFC, Maruti and Bajaj Finance were the major losers.
On the other hand, other stocks including NTPC, Nestle India, Dr Reddy’s and Sun Pharma were among the gainers. According to Vinod Modi, Head of Strategy, Reliance Securities, the domestic stock markets fell sharply due to a weak trend globally. With the rise in new cases of COVID-19 infection in various countries of the world including America, there was a negative impact on the sentiment.
“Financial stocks declined. The main reason for this is the performance of HDFC Bank for the first quarter of 2021-22 not up to expectations. The deterioration in asset quality has raised concerns among investors about banks and NBFCs (Non-Banking Financial Companies) lending to retail and SMEs (small and medium enterprises). “Vehicle and metal indices have improved by more than one per cent. Barring realty and pharmaceutical companies, most major segment-wise indices declined. There was also profit-booking in the shares of mid and small companies….”
Globally, Shanghai, Hong Kong, Seoul and Tokyo closed with heavy losses. Major stock markets of Europe also saw a declining trend in mid-day trading. Meanwhile, international oil benchmark Brent crude fell by 2.28 per cent to USD 71.91 per barrel. (agency)