After the GDP growth of the first quarter fell to 5% on Friday, the first day of trading this week saw a sharp fall in the Sensex and Nifty.
Mumbai| The stock market saw a sharp fall on the first day of the trading this week. The Bombay Stock Exchange (BSE) Sensex lost 769.88 points and closed at 36,562.91 on Tuesday. The Sensex touched a high of 37,188.38 and a low of 36,466.01. On the other hand, the National Stock Exchange (NSE) Nifty also fell 225.35 points and closed at 10,797.90.
The market closed earlier on Friday. The Sensex had gained 263.86 points to close at 37,332.79 on Friday. Whereas, Nifty also closed 74.95 up at 11023.25.
What led to the fall in the market?
The June-quarter GDP growth fell to a 6-year low. The current GDP numbers are the worst in the last five years, weakest growth rate since 2013. The GDP growth has been falling since the last many quarters. Economists had pegged the GDP growth figure at 5.7% but as it turns out, the number is much lower than what was expected.The manufacturing sector also grew to a 15-month low. Vehicle sales continued to decline in August.
The government had announced the merger of 10 state-owned banks on Friday, the effect of which was seen in the banking sector stocks on Tuesday. Punjab National Bank stock traded at the lowest level since October 2018. PNB’s stock fell 9% during trading.