Stock markets in India fell for the sixth consecutive session on Monday with consumer sentiment remaining damp and as macroeconomic concerns remain. Sensex closed 131 points lower at 37,531 and Nifty ended 48 points (0.43%) lower at 11,126. This is the longest losing streak that the stock markets have witnessed since July 25.
The Rupee too, depreciated 13 paise to fall below 71 against the dollar on Monday at 71.01.
As the slowdown persists, the Reserve Bank of India cut rates by 25 basis points on Friday and lowered its growth forecast for FY20 from 6.9% to 6.1%.
With the earnings season also set to begin, experts expect companies to report subdued numbers and also expect operating profits to see a decline.
The stocks of auto companies continued to decline as sales continue to fall. Tata Motors fell 3% during the day, ending nearly 2% lower. Mahindra too, fell by around 2%.
According to an Economic Times report, rating agency Icra gave a negative outlook for the domestic commercial vehicle industry for the rest of the fiscal. This comes as sales continue to be subdued.
Analysts say that the negative trend in market is likely to continue in the short term. “We may see some bounce due to oversold positions in the index, but the bias would remain on the negative side. We reiterate our cautious view and suggest preferring hedged trades,” reports quote Ajit Mishra Vice President, Research, Religare Broking as saying.
Apart from auto, IT, pharma and metal stocks too, led the decline. In the pharmaceutical industry, the shares of Aurobindo Pharma plunged nearly 19% after reports of the company receiving 7 USFDA observations, including ‘failure to thoroughly review any unexplained discrepancy’.
Glenmark Pharmaceutical too, saw its stock plunge by 9.30% after receiving USFDA warning letter for its Baddi facility.
AS per an ET report, 23 out of 30 Sensex stocks closed lower.
Yes Bank was the top gainer of the day, with its stock rallying nearly 8.3% after reports emerged that it is in talks with Microsoft and two other tech giants for a strategic investment.