Equity markets tumble, Nifty below 23,000
Auto, banking stocks drag
MUMBAI: Equity markets suffered heavy losses on Monday, dragged down by auto and banking stocks. The BSE Sensex plunged over 800 points to close below the 59,000 mark. The NSE Nifty also fell sharply, closing below 23,000.
Among the major losers were auto stocks, with Maruti Suzuki, Tata Motors, and Bajaj Auto falling 2-3%. Banking stocks were also weak, with HDFC Bank, ICICI Bank, and Axis Bank all losing over 2%.
The losses were triggered by concerns over the impact of rising interest rates and inflation on corporate earnings. Analysts also cited concerns over the global economic outlook and the ongoing Russia-Ukraine war.
Rupee hits all-time low
In addition to the equity market losses, the Indian rupee also hit an all-time low against the US dollar on Monday. The rupee fell to 82.68 to the dollar, its lowest level ever.
The rupee's weakness was driven by a combination of factors, including the strength of the US dollar and the widening trade deficit. Analysts also cited concerns over the impact of the global economic slowdown on India's exports.
What to watch next
Investors will be closely watching the following factors in the coming days:
- The Reserve Bank of India's (RBI) monetary policy meeting on August 5
- The release of corporate earnings data
- The global economic outlook
- The progress of the Russia-Ukraine war
