MUMBAI: Indian stock markets fell during the first trading session of the week as investors scrambled to offload bad calls amid rising global trade tensions and steady foreign capital outflows from the Indian capital markets.
The BSE Sensex tumbled 159 points to end at 35,264.41, while the broader NSE Nifty finished below the crucial 10,700-mark on Monday. Asian contemporaries also fell on weak Chinese factory data ahead of the expected imposition of US tariffs this week.
“Weak global cues and trade tensions continued to be an overhang on markets. INR continued to be under pressure led by FII selling, inflationary concerns and current account deficit. Key events this week will be governments announcement on minimum support price (MSP) and fear of an escalation in a trade war between US and China,” said Vinod Nair, Head of Research, Geojit Financial Services.
Among sectoral indices, the BSE Telecom index was the biggest casualty, sinking 2.61 per cent, followed by metal and power indices.
Foreign portfolio investors (FPIs), meanwhile, sold shares worth a net Rs 157.15 crore, while domestic institutional investors (DIIs) bought equities to the tune of Rs 2,262.83 crore on Friday.
Asian stock markets mirror global fall
Japan’s Nikkei index tumbled 2.21 per cent and China’s Shanghai Composite index lost 2.52 per cent following data showing a drop in Chinese factory activity amid the expected imposition of US tariffs that had been announced later this week.