MUMBAI: Stocks fell, pushing the Sensex down by 296 points to a level close to its two-month low. Sensex closed the day at 26,271.97, while Nifty fell 93 points or 1.17 per cent to 7,852.40. The biggest losers among Sensex were Hindalco Industries and Sesa Sterlite Ltd, which fell 4.35 per cent and 4.32 per cent respectively, and Cipla and Dr Reddy’s Laboratories that fell 3.7 per cent and 3.2 per cent respectively.
After a sedate opening session stocks had a steady decline after data from Europe showed that Germany’s industrial output data posted the worst figures in more than five years.
Adding to the caution is the impending news from the US regarding reversal of its interest rates cycle.
Investors are also apprehensive of the second quarter results from companies that begin later this week. Adding to the negative sentiment is the slowdown in overseas investment in local stocks.
“Investors are awaiting comments from FOMC, slated to be released on Wednesday, regarding its take on the timing of rate hikes especially in the light of the strong jobs data,’’ said Sanjeev Zarbade, vice-president, Kotak Securities.