The stock market indices fell sharply on Monday as an overhang of the Union Budget 2019, along with weak Asian markets, weighed down investor sentiment. The S&P BSE Sensex declined 501.66 points, or 1.27%, to 39,011.73 at 10:40 am, while the Nifty 50 was down 154.80 points, or 1.31%, to 11,656.35.
Stocks in Asia were trading lower in the morning after a strong US jobs report lowered expectations of a rate cut by the US Federal Reserve in the upcoming policy meetings. China’s Shanghai Composite fell 3% while Hong Kong’s Hang Seng, Japan’s Nikkei and South Korea’s Kospi declined 1-2%.
All the sectoral indices were trading in the red, except the IT index that was flat. Capital goods, auto, and oil and gas indices were among the top sectoral losers, down over 2% each.
Auto stocks took a beating as the budget didn’t introduce any new measures to help the ailing sector. Shares of country’s largest car maker, Maruti Suzuki India Ltd, hit two-year lows of Rs 6,146 apiece, falling more than 3% in intraday trade. Tata Motors was down 2.6%, TVS Motors fell 2.8%, Herp MotoCorp declined 4.4% and Bajaj Auto slipped 2%.
Punjab National Bank (PNB) shares fell nearly 10% after the public sector bank detected a fraud of more than Rs 3,800 crore by Bhushan Power and Steel Ltd (BPSL) and reported it to the Reserve Bank of India (RBI).
Yes Bank shares jumped as much as 6.8% in early trade after the bank said the meeting of the board of directors will be held on 17 July to consider and approve the unaudited financial results of the bank for the quarter ended June 2019.
Mindtree shares also plunged nearly 10% after the IT firm's co-founders Krishnakumar Natarajan, N.S. Parthasarathy and Rostow Ravanan resigned on Friday, two days after Larsen and Toubto (L&T) acquired controlling stake in the global IT services firm.
Infosys and Tata Consultancy Services Ltd (TCS) shares inched up marginally ahead of their June quarter earnings announcement this week. TCS will declare results on 9 July, while Infosys will announce earnings on 12 July.
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