The Bombay Stock Exchange Sensex on Monday fell 238.98 points to end at 26,396.77, and the National Stock Exchange Nifty dropped 59.45 points to end at 8,110.6, PTI reported. The decline is attributed to weak trends in Asian markets – while Hong Kong's Hang Seng fell 2.5% and Shanghai Composite 0.8%, Japan's Nikkei was down 2.61%.
According to brokers, the markets have been affected by data released by the Centre on Friday, which stated that industrial output decreased by 0.8% in April for the first time in the past three months. The report has blamed a drop in capital goods production and manufacturing activities for the trend.
“Nifty’s attempts to conquer 8,300 were not very successful last week, and there was a disinclination to chase prices higher. The close near 8,200 would mean that the early part of this week could see attempts to slip even lower towards 8,164 and beyond. The challenge for the week would be to play dips towards 8,065-8,000 region which, as is, poses a platform for a vertical rise towards 8,400-8,500,” said Geojit BNP Paribas, according to the Business Standard.
The government is set to release consumer price index data later today. On Tuesday, inflation based on the wholesale price index for May will be made public. The other global events that are expected to have an impact on the markets include a two-day policy meeting of US Federal Reserve scheduled for Wednesday and a referendum on European Union membership that will be conducted by the United Kingdom on June 23.