Benchmark stock market indices tumbled in early trade on Monday as the rupee fell to a record low against the US dollar. Decline in metal and energy stocks also weighed on the market.
The S&P BSE Sensex was down by 394.07 points to 77,466.12, while the NSE Niftt50 fell by 130.10 points to 23,429.85 as of 9:40 AM.
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said that the Delhi election results, particularly the emphatic nature of the BJP win, though positive from the market perspective, are unlikely to trigger a sustained rally in the market.
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“With the dollar index above 108 and the 10-year US bond yield above 4.4%, FIIs will continue to sell the rally, restricting any potential upside. It is important to understand that valuations in India continue to be on the higher side, particularly in the broader market. The market needs fundamental triggers like indications on GDP growth and earnings rebound. Until then the market is likely to move only in a range. Investors should stick to fairly valued high quality largecaps,” he added.
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