A steep fall in Chinese stocks on Monday cut into the Bombay Stock Exchange benchmark Sensex’s seven-session winning streak as investors were indifferent to positive economic growth numbers and sold shares forcing the index down by 255.70 points.
In volatile trading, the BSE barometer closed at 15666.64, a loss of 255.70 points, or 1.61 per cent, over its last close. The index had gained 1112.70 points, or 7.51 per cent, in the seven-day long winning rally on growing confidence in the domestic economy. Brokers said acceleration of gross domestic product (GDP) growth failed to dispel the gloom coming from overseas, especially from China. The market rallied after the GDP numbers were announced, but higher levels attracted selling and the market drifted downward.
The Indian economy grew by 6.1 per cent during the first quarter of this fiscal, according to the data released by the Central Statistical Organisation (CSO), making India the second fastest growing economy after China.
China’s Shanghai Composite index plunged 6.74 per cent on continued apprehension about the impact of weakening bank lending on the economy. As a result, other Asian indices ended in the red while European markets were trading weak in their afternoon trade, putting pressure on the local bourses.
The broader 50-share Nifty of the National Stock Exchange fell by 70.25 points, or 1.48 per cent, to 4662.10.
In Asia, Hang Seng dipped by 1.86 per cent, Singapore’s Straits Times by 1.42 per cent, and Japan’s Nikkei by 0.40 per cent. On the BSE, IT, metal, refinery and capital goods counters suffered a setback on profit booking while realty and auto shares attracted good buying support.
Rupee dips 17 paise
The rupee on Monday fell by 17 paise against the U.S. currency due to strong demand for dollar from importers and weakness in the stock markets. At the inter-bank foreign exchange market, the domestic unit settled at 48.82/83, a loss of 17 paise over the previous close of 48.65/66.
The rupee, which resumed lower at 48.85/86, touched a low of 48.93 on weakness in equity markets. However, it later recovered partially to a high of 48.75 before settling at 48.82/83.