Buffeted by a string of negative developments, on Monday the Indian market came under renewed selling pressure with the financials and interest rate sensitive sectors bearing the brunt of selling.
It was however, the IT sector that provided some relief with major IT stocks posting gains and the CNX IT index closing with a gain of about 68 points.
What weighed on the global investors appears to be the possible shutdown of the US Government because of the showdown between the Conservatives and Democrats over Obamacare. With just about a week to go to find an amicable solution, fears of a shutdown led to a sharp decline in the US markets on Friday and the impact was felt in India, too.The Indian market, apart from the US developments, also was spooked by growing concern over interest rates remaining high, and as the market expiry is due this week, the speculators may also have rushed to close their positions.
Though the Nifty was down about 123 points, the IT frontliners remained firm. In fact, HCL Tech, TCS and Infosys made some gains. This provided some stability to an otherwise weak market.
Among CNX IT stocks, HCL Tech closed with a gain of Rs 30.25 at Rs 1,092.05. Infosys was up by Rs 28.80 at Rs 3,023.95 and Tech Mahindra gained Rs 32.60 to close at Rs 1,329. MindTree edged up to Rs 1,110, a gain of Rs 18.15. It was TCS, which among frontline IT stocks gained the least closing at Rs 1957, a gain of Rs 6.70.
In the CNX Nifty, financials and auto stocks were among the major losers. M&M shed Rs 13.20 to end the day at Rs 861, Tata Motors was down Rs 5.15 at Rs 333.20 and Maruti suffered a huge dent in its stock price closing with a loss of Rs 77.25 at Rs 1,390.The one exception among the auto pack was the two-wheeler giant Hero MotoCorp, which was up Rs 25.35 to close at Rs 2,007.
Bank stocks were virtually mauled. Even private sector banks stocks were not spared.