Markets End 4-Day Rally, Nifty Closes Near 25,500, Sensex Tanks Over 450 Points

The manufacturing and services PMI data for June is set to be revealed this week, giving an insight into how the domestic economy has fared.

The Indian stock markets were weighed down heavily on Monday as indices erased gains made during last week's rally. The BSE Sensex ended trading a little above 83,600, plunging more than 450 points, while the NSE Nifty50 settled for the day at 25,517, crashing over 120 points. 

The benchmarks began trading on a highly volatile note, slipping in the pre-open session itself. As markets progressed, both Sensex and Nifty, continued to bleed as profit-taking, majorly in bank stocks dragged the indices. Further, gold prices also fell slightly today.

On the 30-share Sensex, Trent, SBI, BEL, Eternal, and Adani Ports stood among the gainers. Meanwhile, the laggards included Axis Bank, Kotak Bank, Maruti, UltraTech Cement, and Bajaj Finance.

In the broader markets, the Nifty Microcap250 stood out in green and climbed 0.87 per cent, while the Nifty Financial Services led in red and tanked 0.62 per cent. Sectorally, the Private Bank and Realty indices clocked the largest losses and plunged 0.88 per cent and 0.74 per cent respectively. On the other hand, the PSU Bank index soared more than 2.5 per cent.

Notably, both Sensex and Nifty climbed 2 per cent during last week's rally. This surge was driven by easing geopolitical tensions, fall in crude oil prices, and foreign investors' confidence in Indian equities. 

Markets will keenly be on the lookout for major macroeconomic releases lined up this week. The manufacturing and services PMI data for June is set to be revealed this week, giving an insight into how the domestic economy has fared.

Rupee Falls Against Dollar

The Indian rupee ended Monday’s session weaker by 23 paise at 85.73 (provisional) against the US dollar, reversing its early gains amid pressure from domestic market losses and a rebound in crude oil prices. Currency traders noted that the rupee began the day on a positive note, supported by improved global risk appetite. However, a decline in domestic equity markets weighed on sentiment, dragging the local currency lower as the session progressed. This marked a 23-paise fall from its previous close of 85.50, when the rupee had appreciated by 22 paise on Friday.

Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, said, “Indian rupee declined on Monday on weak domestic equities and a bounce back in crude oil prices. Month-end dollar demand also pressured the domestic currency.” He added that a weaker US dollar helped prevent a sharper fall in the rupee. “We expect the rupee to gain on weakness in the US dollar in improved global risk sentiments.