Sensex drops more than 600 points for first time since December 2018
Mumbai | Jagran News Desk: The Sensex on Monday dropped more than 600 points, trading below the 39,000 mark. This is for the second straight session that the Sensex dropped after Finance Minister Nirmala Sitharaman announced the budget.
The Sensex at 11.50 am was at 38,927 points. The Nifty also fell by 192 points and at 11.50 am was recorded at 11,621 points.
The BSE Sensex on Friday had slumped 394.67 points after the Budget proposal of raising public shareholding threshold stoked fears about liquidity in the market. The NSE Nifty too fell by 135.60 points to close at 11,811.15.
Finance minister Nirmala Sitharaman had announced the budget on July 5 and had said: “I have asked SEBI to consider raising the current threshold of 25 per cent to 35 per cent.”
Top losers in the Sensex pack included Hero MotoCorp, L&T, Maruti, Bajaj Auto, M&M, Tata Motors and HUL, falling up to 3.44 per cent.
While, Yes Bank, HCL Tech, Sun Pharma, Infosys, ITC, Vedanta and PowerGrid were among the gainers, rising up to 6 per cent.
On a net basis, foreign institutional investors sold equities worth Rs 89.38 crore, while domestic institutional investors purchased shares to the tune of Rs 275.63 crore, provisional data available with stock exchanges showed Friday.
Besides overhang from the Union Budget, domestic equities extended losses tracking a major selloff in global equities, traders said.
Other Asian markets opened significantly lower as hopes of steep cuts in interest rates by the US Federal Reserve faded after the world's largest economy posted better-than-expected jobs data Friday.
Shanghai Composite Index plunged 2.46 per cent, Hang Seng 1.64 per cent, Nikkei 0.99 per cent and Kospi tumbled 1.85 per cent in their respective early sessions.
On the currency front, the Indian rupee depreciated 15 paise to 68.57 against the US dollar.
Meanwhile, the global oil benchmark Brent crude futures were trading 0.06 per cent higher at 64.27 per barrel.
Posted By: Aalok Sensharma