Sensex and Nifty-50 erased last week's gains as they fell 1.65 per cent on a mix of negative domestic and global cues. While domestic slowdown fears haunt market participants anti-government protests in Hong Kong, the surprise primary election result that saw Argentina's President Mauricio Macri lose the first round of elections led to 35 per cent fall in local equity market and the currency lost 25 per cent of its value against the dollar.
Sensex opened in the green but soon lost the momentum on negative global cues. The benchmark Index fell 693 point intra-day as it touched a low of 36,888.49 with major heavy weights down 2 to 5 per cent. Big gains for Reliance Industries of close to 10 per cent was not enough to prevent the slide in indices.
Sensex finally closed 1.66 per cent or 623.75 points down at 36958.16 while the broader Nifty-50 Index settled 1.65 per cent or 183.80 points lower at 10925.85.
The selling pressure brought down the broader market too as BSE Mid-Cap Index fell 2.25 per cent and BSE Small-Cap Index was down 1.42 per cent.
Mehul Kothari, Senior Technical Analyst, IndiaNivesh said, "The excellent recovery of past week was followed by a dreadful session wherein the benchmarks underwent heavy sell off. The Index Nifty spot started the session with an upside gap but collapsed as the day progressed to close with a massive loss of around 200 points. The Nifty is now back to sub 11000 levels. The Nifty Bank Index too plunged by around 2.47 per cent."
"Going ahead, 10830 would now act as an immediate support for the Index. However, the low of 10780 will now remain a very critical support for the markets," Kothari said.
Navneet Munot, CIO, SBI Funds Management which operates SBI Mutual Fund said, "Indian equity market held up reasonably well in first half of 2019, despite moderating economic growth. Sentiments have turned negative with unfavorable tax developments, lack of strong fiscal support towards growth, tight financial conditions and reduced growth visibility."