Sensex plunges 667 points to close at 36,940; Nifty ends below 10,900

(Representative image)

NEW DELHI: Equity indices finished lower for the fourth straight session on Monday with the benchmark BSE sensex falling over 650 points dragged by financial and banking stocks.
The 30-share BSE index fell 667 point or 1.77 per cent to close at 36,940; while, the broader NSE Nifty settled 174 points or 1.57 per cent lower at 10,900.
IndusInd Bank, Kotak Bank, ONGC, Reliance, Axis Bank, HDFC Bank, Bajaj Auto, Bajaj Finance were the major laggards in the sensex pack falling as much as 4.41 per cent.
While Titan, Tata Steel, HCL Tech, L&T, SBI and Nestle India were the only gainers rising up to 3.19 per cent.
On the NSE platform, sub-indices Nifty Private Bank, Financial Services and Bank plunged up to 2.89 per cent.
According to experts, foreign fund outflow, concerns over rise in COVID-19 cases across the world kept investors cautious.
Further, the Reserve bank of India (RBI), which has cut its key policy rate twice this year to soften the impact of the pandemic on a slowing economy, is expected to announce its monetary policy decision later this week.
An interest rate cut could help banks boost their treasury gains from government bonds at a time when lending has turned sluggish, Deepak Jasani, head of retail research at HDFC Securities told news agency Reuters.
“The expectation of a rate cut is not very high at this point. A ‘no rate-cut’ negativity is … pulling down the financials,” he added.
Meanwhile, the rupee plunged 20 paise and settled below the 75 per US dollar level tracking negative domestic equities and strengthening American currency.
(With agency inputs)