Sign in Subscribe
Banking industry

Indian Markets Witness Bloodbath on Monday

Strategic Insights

— 2 min read

Indian equity benchmarks witnessed a significant decline on Monday, with the Sensex and Nifty ending in the red. The market began on a negative note, following the Reserve Bank of India's (RBI) data showing a $6.687 billion decline in the country's foreign exchange reserves to $564.053 billion. The US Federal Reserve Chair Jerome Powell's comments that the central bank will raise interest rates further to combat inflation exacerbated the sentiment. Selling pressure persisted throughout the trading session, fueled by negative cues from global markets.

Key Takeaways:

  • The Sensex ended at 57,972.62, down by 861.25 points or 1.46%, with 8 stocks advancing against 22 stocks declining.
  • The CNX Nifty ended at 17,312.90, down by 246.00 points or 1.40%, with 11 stocks advancing against 39 stocks declining.
  • The top gainers on the Sensex were Maruti Suzuki up by 1.30%, Asian Paints up by 0.61%, Nestle up by 0.52%, ITC up by 0.24%, and Mahindra & Mahindra up by 0.20%.
  • The top losers on the Sensex were Tech Mahindra down by 4.57%, Infosys down by 3.93%, Wipro down by 3.06%, HCL down by 2.98%, and TCS down by 2.73%.
  • European markets were trading lower, with the UK's FTSE 100 decreasing 52.43 points or 0.7% to 7,427.31, France's CAC decreasing 105.91 points or 1.69% to 6,168.35, and Germany's DAX down by 175.81 points or 1.36% to 12,795.66.
  • Asian markets settled mostly lower on Monday, tracking weakness in US stocks, with the US dollar index touching a 20-year high after US Federal Reserve Chairman Jerome Powell indicated high interest rates would continue for some time to curb inflation.
  • Official Chinese data showed that profits of China industrial firms had fallen by 1.1 percent from January to July, from a year earlier.

Statistics:

  • The Reserve Bank of India's foreign exchange reserves fell $6.687 billion to $564.053 billion in the week ended August 19.
  • The US Federal Reserve Chair Jerome Powell indicated that the central bank will raise interest rates further to combat inflation.
  • The US dollar index touched a 20-year high after US Federal Reserve Chairman Jerome Powell indicated high interest rates would continue for some time to curb inflation.
  • The Sensex ended at 57,972.62, down by 861.25 points or 1.46%.
  • The CNX Nifty ended at 17,312.90, down by 246.00 points or 1.40%.
  • The US dollar index reached a 20-year high, fueled by Powell's hawkish comments.

Sources:

  • "Indian equity benchmarks witness bloodbath on Monday" by Contify
  • "US Federal Reserve Chairman Jerome Powell indicates high interest rates will continue" by Reuters
  • "Asian markets settle mostly lower on Monday" by Bloomberg
  • "Reserve Bank of India's foreign exchange reserves fall $6.687 billion" by The Hindu BusinessLine
  • "Official Chinese data shows profits of China industrial firms fall by 1.1 percent" by China Daily

Read more