NEW DELHI: Indian benchmark Sensex had lost 65.59 points to end at 28,437.71 points and Nifty index shedding 14.60 points to close at 8,633.15 points.
The 30-share Sensex after hitting a session high of 28,581.82 in early trade subsequently succumbed to selling in blue chips and slipped into red as it hit a low of 28,384.09.
After cutting some losses, the Sensex settled at over one-month low of 28,437.71, down 65.59 points, or 0.23 per cent. An earlier than expected US interest rate hike is feared to trigger capital outflows from emerging markets like India.
The US dollar hit a 12-year high against the euro on Monday, ahead of Federal Reserve policy meeting this week, while oil prices fell again as US supplies continued to build. Global investors are keeping their focus on the Fed’s policy meeting on Wednesday, seeking a timeline for when it will raise interest rates as the US economy strengthens.
The Sensex had lost 427.11 points on Friday after rise in retail inflation dimmed hopes of aggressive rate cuts by Reserve Bank of India. Also, the NSE index Nifty ended 14.60 points, or 0.17 per cent, down at over one-month low of 8,633.15 after touching a high of 8,663.55 and a low of 8,612 intra-day.
Selling pressure was visible across-the-board despite successful coal and spectrum auctions and passage of Insurance Bill in Parliament, brokers said. “After the budget, the most anticipated macro event which is watched by markets worldwide is the FOMC meet that is scheduled in coming weeks where markets fear rate hikes by Fed backed by reviving growth and better than expected jobs data,” said Hiren Dhakan, Associate Fund Manager, Bonanza Portfolio.
