Sensex, Nifty Succumb To Global Selloff; FMCG Stocks Outperform
(RTTNews) - Indian shares tumbled on Monday, tracking weak global markets as fears of a possible U.S. recession and concerns over an escalating Middle East conflict sapped investors' appetite for risk.
That said, falling oil prices and encouraging service sector activity data helped Indian markets recoup some early losses.
Oil prices extended losses to hover near eight-month lows in European trade despite Iran vowing 'revenge' over killing of Hamas chief.
The decline in oil prices augurs well for the Indian economy as the country imports around 85 percent of its crude requirement and any decline in prices leads to a reduction in the country's import bill.
On the data front, India's service sector continued to expand strongly in July amid favorable demand conditions, the latest survey data from S&P Global showed.
The rise in overall output was attributed to a sharp growth in new orders on the back of buoyant demand, tech investment, and a growing online presence.
The benchmark S&P/BSE Sensex hit an intraday low of 78,296 before recovering some ground to end the session down 2,223 points, or 2.74 percent, at 78,759.
The broader NSE Nifty index settled 662 points, or 2.68 percent, lower at 24,055, after falling to a low of 23,894 earlier.
Among the prominent decliners, Hindalco, Tata Steel, Adani Ports, ONGC and Tata Motors slumped 5-7 percent.
FMCG stocks rose on defensive buying, with Britannia Industries, Nestle India, Tata Consumer Products and Hindustan Unilever rising between half a percent and 1 percent.
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