Stock indices tumbled on Monday as fear gripped the bourses following a slew of negative news, including weak earnings growth and slower-than-expected economic recovery. The fall was further accelerated by the retrospective minimum alternate tax (MAT) claims on foreign institutional investors (FIIs).
Concerns over the delayed recovery in corporate earnings in the backdrop of a slower-than-expected economic recovery have overtaken sentiments in the short-term — Hitesh Agarwal,head of research, Reliance Securities
The benchmark BSE 30-share Sensitive Index (Sensex) dipped by 555.89 points or 1.95 per cent to close at 27886.21.
Among the broader indices, the BSE-100 was down by 1.84 per cent, BSE-200 by 1.88 per cent, and BSE-500 by 1.90 per cent.
While the mid-cap stocks lost 2.02 per cent, small-cap stocks were down by 2.17 per cent.
On the National Stock Exchange (NSE), the 50-share Nifty closed at 8448.10 with a loss of 157.90 points or 1.83 per cent.
“With today’s 550-plus points fall, the Sensex has lost over 1200-points in the last four trading sessions primarily on account of the nervousness surrounding the March quarter earnings season, which has witnessed a shaky start,” said Hitesh Agrawal, Head of Research, at Reliance Securities.
“While the expectations from results are already low, concerns over the delayed recovery in corporate earnings in the backdrop of a slower-than-expected economic recovery have overtaken sentiments in the short-term,” said Mr. Agrawal.
The development on the taxation front pertaining to global investors is also acting as a short-term headwind for the market.
Rupee down 55 paise
Logging its biggest fall of the year, the rupee, on Monday, plunged by 55 paise to close at over one-month low of 62.91 against the greenback amid sustained demand for dollars from importers.
Dollar short-coverings by exporters on the back of firm dollar overseas amid heavy capital outflows also kept the rupee under pressure, a forex dealer said.
At the inter-bank foreign exchange market, the rupee opened weak at 62.54 a dollar against its last close of 62.36. Later, it met with strong resistance and tumbled to a low of 62.93 before settling at 62.91, showing sharp loss of 55 paise, biggest fall at 0.88 per cent in absolute term in 2015. It had concluded at 62.97 on March 13.
