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The Indian equities declined, headed for their steepest fall for the month of July in 17 years.
The benchmark S&P BSE Sensex dropped 0.4 per cent to 37,250.82 as of 9:39 AM in Mumbai, extending its decline this month to 5.4 per cent. The NSE Nifty 50 Index retreated by the same magnitude and is down 6.3 per cent in July.
Weak global cues, the slowing of the economy and consumption, a new Union budget that failed to provide stimulus and raised taxes on the rich and an ongoing credit crisis among non-bank finance lenders have roiled investor sentiment.
The key equity indexes have now slumped at least 7.5 per cent from their all-time high closes in June.
Strategist’s view
“The near-term outlook isn’t great for local equities and there’s nothing really to get anyone excited,” said Andrew Holland, chief executive officer at Avendus Capital Ltd in Mumbai.
“Markets have already priced the expected interest-rate cuts by the US and the RBI, but at the same time, they are also factoring that the local economy isn’t going to turn around quickly,” he said.
The numbers
Eighteen of the 19 sector indexes compiled by BSE Ltd retreated, paced by a gauge of white-goods makers. Twenty-three of the 31 Sensex members and 40 of the 50 Nifty companies fell.
Axis Bank dropped 6.1 per cent, the most among Sensex and Nifty members, after the lender reported its net income for the June-quarter that missed analyst estimates.
Tech Mahindra also slid 4 per cent after its first-quarter net income and revenue lagged behind estimates.
Coffee Day Enterprises Ltd plunged 20 per cent for a second day. Its founder VG Siddhartha, who went missing since Monday, was found dead. The stock fell the most on the S&P BSE 500 Index.
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