Stocks hit 2-month low on US rate fears

Sensex slumps 604 pts, Nifty down 181 pts

Stocks hit 2-month low on US rate fears

Spooked by fears of an imminent rate hike by the US Federal Reserve and negative global cues, benchmark indices ended down over 2 per cent on Monday.

While the Sensex ended down 604.17 points (2.05 per cent) at 28,844, the Nifty closed 181 points lower at 8,756.75.

“The markets witnessed heavy selloff on the back of weak global cues and a weak rupee. The global markets were down on the concerns that the Federal Reserve may increase its interest rates on the basis of strong US jobs data,” Alex Mathews, Head (Research), Geojit BNP Paribas Financial Services said.

Declines highly outnumbered advances on the Nifty with 44 scrips declining and only six stocks ending in the green.

Banking and metal stocks bore the most brunt of the losses. Sesa Sterlite was the top loser on the Nifty ending 5.62 per cent lower at Rs 198.35 with volumes of 38.49 lakh shares.
Other major losers included Hindalco (down 5.06 per cent at Rs 140.60), Axis Bank (down 4.35 per cent at Rs 590) and ICICI Bank (down 4.33 per cent at Rs 332.70).

Tech stocks end lower
Leading technology stocks also ended lower as the country’s largest software exporter Tata Consultancy Services (TCS) indicated in a conference call with analysts that revenues in the fourth quarter are likely to be in line with what it was last year.

TCS ended lower at Rs 2,649 (down 1.76 per cent) with volumes of 14.41 lakh shares on NSE. Infosys closed 2.65 per cent lower at Rs 2,188 while HCL Tech also closed in the red with a loss of 0.48 per cent at Rs 2,055.

Some stocks managed to buck the downtrend to end in the green. Jindal Steel ended with a gain of 4.56 per cent at Rs 193.95 with volumes of 1.35 crore shares on NSE.

Other major gainers included Hindustan Unilever (up 3.44 per cent at Rs 972), Lupin (up 1.73 per cent at Rs 1,869.95), Dr Reddy’s (up 0.67 per cent at Rs 3,464.70), Sun Pharma (up 0.3 per cent at Rs 1,041.90) and NMDC (up 0.08 per cent at Rs 127.45).

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