Mumbai: India's stock markets edged lower on Monday but showed some resistance as investors bought beaten-down stocks amid lingering worries about a slowdown in China and a weak rupee. Asian stocks were subdued after China revised its annual economic growth rate in 2014 to 7.3 percent from the previously released figure of 7.4 percent.
A weak rupee, which fell to a low of 66.8 against the U.S. dollar, also weighed on Indian stocks. "The outlook is (still) negative but the market is oversold. That's the key reason why we are holding on," said Alex Mathews, head of research at Geojit BNP Paribas. "Because of the absence of any positive triggers, the market could remain subdued or trade sideways".
Indian domestic institutional investors have somewhat cushioned the exodus of foreign investors, aggressively buying on every dip. But data suggest that their war chest might not be enough to counter foreign investor outflows. The benchmark BSE Sensex was down 0.22 per cent, while the broader Nifty eased 0.3 percent, slipping below the 7,650 mark and trading at a 14-month low.
All sectors were trading in the red except for select auto stocks and some beaten-down financial stocks on bargain-buying by some investors. IT and pharma stocks saw selling pressure despite weakness in the local currency. Infosys fell 0.69 per cent, HCL Tech (HCLT.NS) was down 2 percent while Sun Pharma (SUN.NS) was down 0.9 per cent and Lupin fell 1.8 per cent.
Coal India shares were down 2.7 per cent on worries FY16 offtake estimates might be at risk if electricity boards' financing issues are not resolved and power demand did not pick up in the second half of FY16. Elder Pharmaceuticals (ELDP.NS) fell 6 per cent after the company sent a letter to the exchange saying it was facing a severe financial crunch and that its audited results for the year ended June 30 were delayed.
