Ahead of the RBI policy meet, the Indian equity market plunged sharply on Monday amid a sell-off witnessed across equity markets in the world. Concerns about China's economic slowdown, coupled with expectations that the Federal Reserve would further cut its bond buying are piling up the pressure. In addition, political uncertainty in Turkey and Thailand coupled with a financial crisis in Argentina are adding to the woes. This week the Fed is largely expected to cut its monthly bond purchases by another $10 billion. If all these issues were not enough, the Indian rupee further weakened declining past the 63 per US dollar market to lowest in over two months.
The fall was so sharp that not a single sectoral index on the BSE ended in the green. The interest rate sensitive realty, auto and banking stocks led the fall followed by power, oil & gas, metals and the capital goods stocks. Even the mid-cap and the small-cap stocks were battered.
Finally, BSE Sensex closed at 20,707 down 426 points, while NSE Nifty closed at 6,136 down 131 points over the previous close.
The fall was so sharp that not a single sectoral index on the BSE ended in the green. The interest rate sensitive realty, auto and banking stocks led the fall followed by power, oil & gas, metals and the capital goods stocks. Even the mid-cap and the small-cap stocks were battered.
Finally, BSE Sensex closed at 20,707 down 426 points, while NSE Nifty closed at 6,136 down 131 points over the previous close.
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