The Sensex, on Monday, closed on a 52-week low of 16,990.18, down by 315.96 points or 1.82 per cent from the previous close. The Nifty closed down by 92.75 points or 1.78 per cent to end the day at 5,118.50.
After having recovered in the mid-day trading session, stocks slumped towards the end of the trading session as the enthusiasm among investors fizzled out.
The reason for this has been attributed to the fact that the European markets, which had been opened well in the morning, started falling as the day progressed. Except for the Spanish IBEX 35 Index, all major European markets had fallen by the time the Indian markets had closed.
“Europe had opened firm bringing comfort to the investors but now the European markets are losing ground and the general feeling is that some impact is still to be felt. Most investors have been numbed into inactivity. The sentiment is going to be negative for a while, going forward,’’ said Mr Prakash Diwan, Head of Instutional Client Group, Asit C Mehta Investment Interrmediates.
Of the Sensex 30 stocks, Hero Honda was up by 4.03 per cent at Rs 1,855.95 per share, while the worst-hit was the DLF stock which was down by 6.85 per cent at Rs 195.85 per share.
A total of 661 shares advanced whereas a total of 2,199 stocks declined.
Market players say that while the volumes on Monday were ‘decent’, however there was still some scepticism in the market with regards to the money flow.
“It is not clear where the fresh money is going to come from. The fundamentals for the economy are good and strong, but the market never follows fundamentals, only sentiments,” said Mr Diwan.