MUMBAI: An unexpectedly sharp drop in industrial production numbers for July , on the back of fears of an imminent default by Greece , spooked investor sentiment on Dalal Street on Monday , pulling the sensex down by 365 points to 16,502.
As foreign funds sold heavily, the Indian rupee too tumbled against major currencies. It weakened 66 paise, or about 1.5%, to close at 47.23, a 15-month closing low. This in turn impacted the bullion market where gold prices, directly linked to international prices and the dollar exchange rate , declined marginally, but still closed above Rs 28,000 per 10 gram.
Monday's trading left investors poorer by about Rs 1.1 lakh crore with BSE's market capitalization now at Rs 60.4 lakh crore.
Going forward, brokers and dealers feel that RBI's decision on interest rates in its September 16 meeting could have a major impact on investor sentiments. Globally, the emerging economic situations in Europe and the US will dictate the market's trend, they said.
"IIP numbers, combined with the news that Germany is preparing its banks for a default by Greece, were the main reasons for the slide in Monday's market," said Sudip Bandyopadhyay , MD & CEO, Destimoney Securities. "A 3.3% rise in IIP was quite a shocker for the market . No one expected anything lower than 4.5%," Bandyopadhyay said.
As foreign funds sold heavily, the Indian rupee too tumbled against major currencies. It weakened 66 paise, or about 1.5%, to close at 47.23, a 15-month closing low. This in turn impacted the bullion market where gold prices, directly linked to international prices and the dollar exchange rate , declined marginally, but still closed above Rs 28,000 per 10 gram.
Monday's trading left investors poorer by about Rs 1.1 lakh crore with BSE's market capitalization now at Rs 60.4 lakh crore.
Going forward, brokers and dealers feel that RBI's decision on interest rates in its September 16 meeting could have a major impact on investor sentiments. Globally, the emerging economic situations in Europe and the US will dictate the market's trend, they said.
"IIP numbers, combined with the news that Germany is preparing its banks for a default by Greece, were the main reasons for the slide in Monday's market," said Sudip Bandyopadhyay , MD & CEO, Destimoney Securities. "A 3.3% rise in IIP was quite a shocker for the market . No one expected anything lower than 4.5%," Bandyopadhyay said.
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