Indian stocks recorded a steep fall after registering robust gains in the early morning trade on Monday (03) amid weak international market sentiments. Bench mark Bombay Stock Exchange (BSE) Sensex registered its longest losing run in over 90 days.
IBSE Sensex closed over 600 points lower from intraday high recorded earlier in the day to close at 38312.52 points, fall of 332.55 points or 0.86 per cent when compared to the previous close. National Stock Exchange (NSE) Nifty 50 index closed at 11,582.35 points, a decline of 0.84 per cent or 98.15 points.
Earlier, the BSE Sensex jumped nearly 300 points on fresh buying in IT, tech, and capital goods counters after higher than expected GDP growth rate estimates released by the government on Friday (31) for the April-June quarter of the fiscal 2018-19 and a slight recovery in rupee.
On a net basis, foreign portfolio investors (FPIs) sold stocks worth £23.23 million on Friday (31), last week, according to a provisional data.
Asian stocks fell for the third continuous session on Monday (03), pulled down by concerns over persisting US-China trade war and volatile trend in the currencies of developing countries. MSCI’s broadest index of Asia-Pacific shares outside Japan declined 0.7 per cent while Japan’s Nikkei fell 0.5 per cent.
According to the market analysts, investors' concerns over US-China trader war pulling down their confidence as US President Donald Trump is very likely to impose 25 per cent tariffs on $200 billion worth of exports from China as part of his new trade strategy.
Shanghai stocks, recorded a decline of 5.3 per cent in August 2018 on worries about intensifying trade war, fell 0.9 per cent to 2,700, moving back at the 2.5-year slow of 2,653 recorded 15 days ago.
Meanwhile, Continuing its bearish trend and erasing gains recorded in morning trade on Monday (03), Indian rupee reached a new historic low of 71.10 against dollar in the late afternoon trade tracking weak sentiments in the international stock and currency markets.
The Turkish lira was seen trading at 6.6200 against the dollar on early Monday (03) trade, a fall around one per cent, whereas Indonesian rupiah moved down to 14,777 against the dollar, its lowest record since the country’s economic crisis 20 years ago.
The incident occurred on the same day Labour leader Sir Keir Starmer addressed the audience at London Tech WeekGetty Images