New Delhi:
Indian stock market was hit on Monday following Greece debacle which forced the banks to remain shut and forced capital controls to prevent withdrawals, after cash machines ran dry. The benchmark BSE Sensex tanked over 535 points and the NSE Nifty slid below the 8,300 mark in opening trade today on across-the-board selling by participants.
A weak trend at other Asian markets was the main trigger for the plunge as investor sentiment was dampened by fears of a possible Greece default.
The 30-share gauge, which had lost 84.13 points in the previous session, hurtled down 535.87 points, or 1.92 per cent, to 27,275.97.
All the sectoral indices were trading in the negative terrain, led by realty, capital goods and banking, with losses up to 3.16 per cent.
Also, the NSE Nifty slipped below the 8,300 mark by skidding 166.45 points, or 1.99 per cent, to 8,214.65.
Brokers said widespread selling by investors as well as funds, in line with a global sell-off on fears that Greece may default on a debt repayment and crash out of the euro zone, soured the mood.
Besides, weakness in the rupee, which turned lower by 24 paise to 63.88 against the dollar in early trade at the forex market, too negatively impacted sentiment, they said.
In Asian markets, Hong Kong’s Hang Seng was down 1.41 per cent while Japan’s Nikkei slumped 1.78 per cent in early trade today.
The Dow Jones Industrial Average, however, ended 0.31 per cent higher in Friday’s trade.
Extending losses for the fifth consecutive day, the rupee shed 24 paise to trade at 63.88 against the US dollar in early trade today at the Interbank Foreign Exchange due to continued demand for the American currency from importers.
Forex dealers said besides sustained demand for the dollar in view of the approaching month-end, weakness in the euro against the American currency overseas amid growing concerns of a Greece debt default and a possible euro zone exit weighed.
Furthermore, a lower opening in domestic equities kept up pressure on the rupee, they said.
The rupee had lost 2 paise to close at 63.64 in a range-bound trade on month-end demand for the greenback from importers despite its weakness overseas.
Meanwhile, the benchmark BSE Sensex plunged 535.87 points, or 1.92 per cent, to 27,275.97 in opening trade today.
