Mumbai, May 13: Falling for the ninth successive session on Monday, the key equity indices, Sensex and Nifty, declined over 1 per cent following massive volatility during the session.
The BSE Sensex ferried over 580 points between the days highs and lows before closing 372.17 points lower at 37,090.82.
The Nifty lost over 1 per cent or 130 points to drop to 11,148.20 during the day’s trade.
The broader markets saw an even more intense decline. The Nify Mid-cap and Small-cap index declined over 2 per cent.
“Consolidation extended in the market as rising trade tensions and contraction in domestic industrial production dented investor sentiment. Additionally, exodus of foreign funds and rising oil prices impacted the currency movement,” said Vinod Nair, Head of Research, Geojit Financial Services.
Global markets are nervous about the fresh US-China spat over trade. On Friday, the US more than doubled tariffs on $200 billion worth of Chinese products from 10 per cent to 25 per cent, which elicited an immediate response from China threatening “necessary counter-measures”.
“Global economic situation will be a determining factor for the market while investors remain focused on the upcoming CPI inflation data to get cues on the interest rate trajectory. Currently, the market is expecting reduction in interest rate in the medium-term,” Nair added.