Bears prowled the markets on Monday ripping value from stocks as fears of a meltdown gripped the Street.
The Sensex sank nearly 942 points to end at a three-month low after plunging over 1400 points in early trades due to uncertainty ahead of the US presidential elections and another set of stimulus measures by China even as FPIs heavily sold stocks.
The 30-share sensex tanked 941.88 points, or 1.18 per cent, to end at 78782.24, the lowest closing level since August 6.
During the day, it plummeted 1491.52 points, or 1.87 per cent, to 78232.60.
On the NSE, the broader Nifty tanked 309 points to close at 23995.35 with 42 of its constituents ending in the red.
Earlier during the session, the index fell more than 488 points to a low of 23816.15.
US stocks were set to open flat on Monday as traders stayed away from large bets in an action-packed week in which Americans will elect a new president and the US Federal Reserve is likely to cut its benchmark policy rate.
With a latest poll showing Democratic candidate Kamala Harris leading in Iowa ahead of a Tuesday vote, the so-called “Trump trades” lost ground, triggering a retreat in dollar, bond yields and bitcoin.
Stocks viewed as bets on Republican candidate Donald Trump’s win were choppy in premarket trading, while a drop in the benchmark 10-year treasury yield from its recent high eased pressure on the broader equity market.
Provisional data from the Indian stock exchanges showed FPIs offloading stocks worth ₹4,330 crore on Monday.
“The Nifty and Sensex have resumed their downward trend after a week of consolidation, largely due to heavy selling by FPIs. The expectation of another stimulus package from China is driving fund outflows from India to China, while FPIs are also booking profits ahead of the significant upcoming US elections.
Additionally, DIIs appear to be on the sidelines amid these major global events,’’ Santosh Meena, head of research, Swastika Investmart Ltd, said.
Adani Ports was the top loser in the Sensex pack as it lost 3.23 per cent. It was followed by Reliance Industries and Sun Pharma.
