Sensex, Nifty extend losses for 5th straight session over political concerns in Karnataka

The stock markets witnessed losses for the fifth straight day with Benchmark Sensex closing 232 points lower on Monday. While the BSE Sensex settled at 34,616.13, the NSE Nifty plunged over 79 points to end at 10,516 amid high-voltage political drama in Karnataka.

Investors were more cautious after Bharatiya Janata Party (BJP) leader BS Yeddyurappa quit as the chief minister of Karnataka on Saturday.

The day-old CM resigned ahead of the floor test, which was scheduled to prove his contested majority in the Karnataka hung assembly. Yeddyurappa's resignation paved the path for the Congress-JD-S alliance to form the government in the southern state.

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Sentiment got another jolt due to rising petrol and diesel prices, downgraded PNB rating amid earnings season. The recent fraud on PNB’s capital is one of the reasons behind this fall.

The rupee too weakened against the US dollar on worries of higher oil prices and losses in Asian currencies on Monday. The US dollar ended higher against the rupee at Rs 68.12/13 per dollar while the pound sterling finished lower at Rs 91.41/43 at the Interbank Foreign Exchange (forex) market.

Though the 30-scrip Sensex soared about 126 points to hit a high of 34,973.95 in early trade, it gave up on the gains following a widespread sell-off, which dragged it down to 34,593.82.

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The gauge finally ended at a nearly one-month low of 34,616.13, down 232.17 points or 0.67 per cent. This is its weakest closing since April 25 when it had finished at 34,501.60. It had lost 708.41 points in the previous four sessions.

(With inputs from agencies)