Benchmarks make huge gap down opening; Nifty tests 8000 level

Indian equity markets made huge gap-down opening on Monday with the cut of above three per cent, which dragged both Sensex and Nifty below psychologically crucial 26,500 and 8,000 levels respectively, in absence of positive triggers and sustained selling activities by market-participants amid weak global cues, on concerns over economic slowdown in China, the world’s second largest economy. Meanwhile, the session was also harrowing for broader indices, which were trading with losses of over 3.50%.  The sentiments were further weighed down by Indian rupee which slumped to as low as 66.49 per dollar, its lowest since September 05, 2013, as Asian markets reeled under fears of a China-led global economic slowdown. Additionally, foreign portfolio investors (FPIs) sold shares worth a net Rs 2340.60 crore on August, 21, 2015, as per provisional data released by the stock exchanges, also dampened the markets.

On the global front, US markets ended lower on Friday as fears about China’s economy and global growth spurred heavy selling, with the main indexes posting massive one-day selloffs and their biggest weekly declines in nearly four years. Asian markets were trading in red as a rout in Chinese equities gathered pace, hastening an exodus from riskier assets as fears of a China-led global economic slowdown roiled world markets.

Back home, all sectoral indices on BSE were reeling under pressure, stocks from Realty, Consumer Durables, Bankex and Auto counters were the prominent losers of the session. The market breadth on BSE was negative in the ratio of 162: 1661 while 19 scrips remained unchanged. 

The BSE Sensex is currently trading at 26501.47, down by 864.60 points or 3.16% after trading in a range of 26359.53 and 26730.40. There were 0 stocks advancing against 30 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 3.69%, while Small cap index slumped by 3.98%.

The losing sectoral indices on the BSE were Realty down by 5.20%, Consumer Durables down by 4.38%, Bankex down by 4.12%, Auto down by 4.11% and INFRA down by 4.04%, while there were no gainers.

The top losers on the Sensex were Axis Bank down by 6.59%, Tata Motors down by 6.19%, GAIL India down by 5.55%, Vedanta down by 5.49% and ONGC down by 4.77%, while there were no gainers. 

Meanwhile, amid the global chaos over stalling economic growth, Finance Minister Arun Jaitley has reiterated that most of the challenges faced by the Indian economy have been created by external factors, though he expressed confidence in the country's strong fundamentals to withstand such transient global trends and said that “I have no doubt that our ability to withstand the transient global trend, created predominately by external factors is very strong.”

Jaitely emphasizing that macroeconomic indicators like inflation, forex reserve, capital investment in infrastructure and revenue collection are all positive, stated that if an economy exists on its own solid foundation and its own fundamentals are strong, then it is not a very challenging task' to withstand these transient trends.

Finance minister said while the global situation might not be very promising, India could have an opportunity if it gets its fundamentals right. He said that India could surpass the target of eighth per cent GDP growth this financial year if legislative and executive decisions were taken properly.'I do believe it is (8 percent and above growth) achievable... if we take right steps in the right direction. In order to achieve it, it is extremely important that we open ourselves for investments.”

FM also ruled out any impact of monsoon on the economy and said there was only a “slight inadequacy” in rains. He added that we are expecting a better show in agriculture this year compared to last year.

The CNX Nifty is currently trading at 8031.55, down by 268.40 points or 3.23% after trading in a range of 7990.90 and 8060.05. There were 0 stocks advancing against 50 stocks declining on the index.

The top losers on Nifty were Tata Motors down by 6.54%, Yes Bank down by 6.18%, Axis Bank down by 6.13%, Vedanta down by 5.60% and GAIL India down by 5.40%, while there were no gainers. 

Asian markets were trading in red; Hang Seng decreased 1026.53 points or 4.58% to 21,383.09, Nikkei 225 decreased 853.14 points or 4.39% to 18,582.69, Taiwan Weighted decreased 381.33 points or 4.9% to 7,405.59, Shanghai Composite decreased 296.55 points or 8.45% to 3,211.20, Jakarta Composite decreased 199.45 points or 4.6% to 4,136.50, Straits Times decreased 96.06 points or 3.23% to 2,874.95, KOSPI Index decreased 53.88 points or 2.87% to 1,822.19 and FTSE Bursa Malaysia KLCI decreased 29.19 points or 1.85% to 1,545.48.