Dalal Street indices tank on weak global cues
traders cut bets ahead of the crucial US jobs data scheduled to be released after trading hours in Mumbai. Speculation that foreign funds were selling ahead of the deadline to comply with the ultimate beneficial ownership norms on Friday also dented sentiment.
The regulations require overseas investment vehicles to provide granular details of all entities holding any ownership, economic interest, or exercising control, failing which they must liquidate their domestic holdings.
NSE's Nifty fell 292.95 points or 1.2% to close at 24,852.15. BSE's Sensex declined 1017.23 points, or 1.2%, to end at 81,183.93. Banks and oil and gas shares led the selloff.
Foreign portfolio investors (FPIs) net sold shares worth ₹621 crore. Domestic institutions were buyers to the tune of ₹2,121.5 crore.
Elsewhere in Asia, China declined 0.8%, Hong Kong remained flat, South Korea declined 1.2% and Taiwan rose 1.17%. The pan-Europe index Stoxx 600 fell 1%.
Fear Gauge Jumps
«We've seen the market fall mainly because of global factors rather than local ones as the market is looking forward to the US jobs data,'' said Andrew Holland, CEO, Avendus Capital Public Markets Alternate Strategies.
US non-farm payroll data announced on Friday evening showed that hiring trends in August were moderate. This metric will help determine the US Federal Reserve's interest rate cuts in the months ahead.
Wall Street is betting that the central bank will slash policy rates by at least 25 basis points when it meets on September 17-18. The S&P 500 as down
