Sensex, Nifty were gripped by volatility in opening trade (Image: PTI)
India Markets Update: The BSE benchmark Sensex plunged over 310 points in opening trade on Monday due to sell-offs mainly in financial, metal and auto stocks amid subdued global cues. Likewise, the NSE gauge Nifty too dropped over 84 points to slip below the psychological 11,500-level. Yes Bank, IndusInd Bank, Tata Steel, Sun Pharma, Vedanta and Tata Motors were among the top losers on the Sensex chart. On the other hand, IT stocks - HCL Tech, TCS, Infosys - were the major gainers.
The Indian rupee opened on a cautious note and fell 7 paise to 70.63 against the US dollar in early trade on Monday tracking weak opening in domestic equities and foreign fund outflows. The Indian rupee on Friday had closed at 70.56 against the US dollar. Forex traders said increasing demand for the US dollar vis-a-vis other currencies overseas and rising crude oil prices weighed on the domestic unit. At the interbank foreign exchange, the rupee opened on a strong note at 70.37 then lost momentum and fell to 70.63 against the US dollar, showing a decline of 7 paise over its previous closing.
Opening on a flat note, the Sensex was gripped by volatility as the trade progressed and dived 310.80 points or 0.80 points to trade at 38,511.77 in early deals. While, the Nifty was down 84.05 points or 0.74 points to 11,427.55.
At 10.15 AM, BSE SENSEX was trading at 38,503 down 318 points. NSE Nifty was down almost 100 points at 11,413 points.
Analysts attributed the sluggish start for the Indian markets to subdued global cues. Asia stocks too were trading mixed as investors continued to watch developments on the US-China trade front. Reports suggested that the White House was considering curbs on US investments in China.
The Indian rupee opened marginally higher against the US dollar in early deals on Monday.
Last week, the Indian government continued with its measures to prop up consumer demand across sectors and bring the economy on track.
The government has been holding a series of consultations with various stakeholders to brainstorm on measures needed to accelerate economic growth, which dipped to a six-year low of 5 per cent in the first quarter of 2019-20.
Finance Minister Nirmala Sitharaman on Friday said various ministries have cleared Rs 40,000 crore out of Rs 60,000 crore due mainly to MSMEs for supply of goods and services, and the remaining amount not locked in litigation too will be paid by the first week of next month.
The government has also set October 15 as the deadline for central PSUs to clear overdue payments to vendors and exhorted them to front-load capital expenditure as it looks to lift economic growth from six-year low.
On Friday, foreign portfolio investors sold shares worth a net of Rs 213.60 crore, exchange data showed.