India's Sensex and Nifty tumble.
Mumbai: The mood has turned somewhat bearish with investors opting to book profits at every higher levels rather than making fresh purchases on weak global cues as the benchmark S&P BSE Sensex on Monday tumbled by over 244 points -- biggest fall in a month -- to end at two-week low of 26,816.56, despite fall in wholesale price inflation (WPI) inflation. Although retail inflation (CPI) eased to 7.8 per cent in August 2014 from 7.96 per cent in July 2014, the growth of factory output, as measured by the Index of Industrial Production (IIP) showed a sharp drop in June 2014, data released by the government after trading hours on last Friday also weighed heavily on the market market. Wary market participants preffered to book profits as they expected early hike in interest rates by the US Federal Reserve in two-day policy setting meeting starting on Tuesday, which is going to affect the emerging markets including India. Metal counters suffered the most after weak Chinese factory output data, indicating slowdown in the world's second-biggest economy. Besides metal refinery, IT, capital goods and FMCG stocks also attract profit-booking while some of the pharma and realty counters closed with gains. The BSE 30-share barometer resumed lower in line with sluggish Asian trends on the back of last weekend's fall on Wall Street and gradually moved down further to settle at two-week low of 26,816.56 -- level not seen since August 28, 2014 when it had settled at 26,638.11-- revealing a fall of 244.48 points or 0.90 per cent. Similarly, the 50-issue CNX Nifty of the NSE also dipped by 63.50 points or 0.78 per cent to two-week low of 8,042.00. Barring China, other Asian markets closed lower between 0.06 per cent and 0.99 per cent on weak Chinese factory output data. Japan market was closed on Monday for holiday. European stocks, excepting German, were trading lower. The CAC was down by 0.37 per cent and the FTSE by 0.26 per cent while the DAX was up by 0.10 per cent. Rupee declines The rupee reacted sharply downwards by 48 paise -- biggest fall in more-than five-week -- to close below 61-mark after more-than one-month at 61.13 against the American currency following fresh dollar demand from importers amid sluggish local equities. Strong surge in dollar overseas also kept the rupee under pressure while sustained capital inflows could not have desirable impact on the rupee, a forex dealer said. Against a gauge of six major global rivals, the dollar index was up by 0.23 per cent ahead of the two-day policy setting meeting of the US Federal Reserve starting on Tuesday. Forex dealers expected early hike in interest rates by Fed after improving economy, which might induce foreign funds to withdraw money from emerging markets, including India.
Muscat Press and Publishing House SAOC 2014 Provided by SyndiGate Media Inc. ( Syndigate.info ).