The domestic stock market had a weak start on Monday amid continuous outflow of foreign funds and a mixed trend in Asian markets. After a weak start, the decline in the market increased. Selling in heavyweight stocks HDFC Bank, Infosys, ICICI Bank and HDFC led the Sensex down 800 points to 57,845, while the Nifty slipped 237 points to 17,300. In the sectoral index, except Nifty PSU Bank and Metal Index, all the sectors are trading in the red mark.
The biggest fall of more than 3 per cent in the Sensex was in L&T. Shares of HDFC Bank, Infosys, Mahindra & Mahindra, Asian Paints, Bharti Airtel, Dr Reddy’s, Maruti and HDFC also fell in early trade. On the other hand, Tata Steel, PowerGrid, SBI and Reliance Industries are seeing an increase in the shares.
In the previous session, the Sensex closed at 58,644.82 points, down 143.20 points, or 0.24 per cent. Similarly, the Nifty of NSE closed at 17,516.30, down 43.90 points or 0.25 percent.
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Investors have suffered a major setback due to the weakness in the market. His total wealth sank more than Rs 2.34 lakh crore. The market cap of the total BSE listed companies was Rs 2,67,71,278.74 crore on Friday, which declined by Rs 2,34,947.67 crore to Rs 2,65,36,331.07 crore on Monday.
After declaring a public holiday by the Maharashtra government to mourn the death of legendary singer Lata Mangeshkar, the RBI said government securities, forex and markets will remain closed on Monday.
Foreign portfolio investors (FPIs) pulled out Rs 6,834 crore from the Indian markets in the first four trading sessions of February. On the other hand, according to the provisional data of the stock market, Foreign Institutional Investors (FIIs) were net sellers in the capital market. He sold shares worth Rs 2,267.86 crore on Friday.
The Reserve Bank of India (RBI) announced the rescheduling of the rate-setting Monetary Policy Committee (MPC) meeting by a day. “Due to the declaration of February 7, 2022 as a public holiday by the Government of Maharashtra in honor of late Mangeshkar, the Bharat Ratna, the schedule of the MPC meeting has now been changed from February 8 to 10, 2022,” RBI said in a statement.
Experts, however, are of the view that the Reserve Bank’s Monetary Policy Committee (MPC) may change the policy stance from ‘moderate’ to ‘neutral’ and reverse repo rate as part of the liquidity normalization process. The next bi-monthly monetary policy will be announced on the coming Thursday.
