Indian markets suffered losses for the second consecutive day on Monday with the Sensex tumbling nearly 800 points in intraday deals and Nifty slipping below 11,600 level. The indices reported their biggest one-day fall of 2019.

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The Sensex ended 793 points lower at 38,721, while the broader Nifty50 index lost 253 points to end at 11,559. Meanwhile, in broader markets, the Nifty Midcap fell 2.6 percent, while the Nifty Smallcap index declined 2.3 percent.

The fall in the index was led mainly by the banking sector, especially public sector banks, followed by realty, auto, and financial services stocks. The Nifty Bank fell more than 3 percent in intraday trade, while the Nifty PSU Bank was down nearly 6 percent. Only four stocks in the Nifty50 index were trading in green. Bajaj Finance and Bajaj Finserv fell over 8 percent each, while YES Bank gained most, up 5 percent.

The broader market also fell over 2 percent — the S&P BSE Midcap index was down 2.7 percent while the S&P BSE Smallcap index was down 2.5 percent.

These are the top 5 reasons that are dragging the markets today:

Union Budget 2019: Finance minister Nirmala Sitharaman's proposal to increase the minimum public shareholding of listed companies to 35 percent from 25 percent was one of the main reasons that spooked the markets. the government’s move to tax share buybacks also dragged the sentiment.

Selloff in Asia: Sentiment in broader Asia was negative too with MSCI’s broadest index of Asia-Pacific shares outside Japan inching over 1 percent lower after strong US jobs data tempered expectations for a Fed rate cut. Hong Kong’s Hang Seng and South Korea’s KOSPI fell 1.8 percent each. Japan’s Nikkei was down 1.01 percent.

Earnings: Investors also turned cautious ahead of the June quarter earnings season. Analysts are not expecting big earnings surprises this quarter, except in financials. They expect muted performance from automobiles, agriculture, metals, oil and gas and non-banking financial companies/housing finance companies (NBFCs/HFCs). IT bellwether TCS will announce its first-quarter numbers on Tuesday, followed by Infosys on Friday.

Rupee: US jobs data dragged emerging markets currencies against the dollar. The rupee fell 21 paise to 68.63 a dollar.

FIIs turn sellers: Reversing their five-month buying streak, foreign institutional investors (FIIs) turned sellers, selling Rs 3,717 crore versus buying Rs 3,628 crore from the capital markets today amid global trade and Budget worries.

First Published:Jul 8, 2019 4:58 PM IST