Sensex drops below 39,000 as pivotals slide

Domestic stocks dropped sharply on first trading day of the week led by slide in index heavyweights Reliance Industries (RIL), Axis Bank and L&T. The barometer index, the S&P BSE Sensex, lost 491.28 points or 1.25% to 38,960.79, as per the provisional closing data. The Nifty 50 index lost 151.15 points or 1.28% to 11,672.15, as per the provisional closing data. The Sensex dropped settled below the psychological 39,000 mark. Metal stocks slumped. PSU bank stocks fell.

After opening on a weak note, the benchmark indices continued to drift lower as the day's trading session progressed. Selling pressure accentuated in late trade pulling the key indices to intraday low.

The market breadth was weak. On BSE, 695 shares advanced and 1868 shares declined. A total of 133 shares were unchanged.

The BSE Mid-Cap index fell 1.29%. The BSE Small-Cap index declined 1.35%.

Shares of index heavyweights, Reliance Industries (down 2.69%), Axis Bank (down 2.93%) and L&T (down 1.97%) declined.

Metal stocks dropped sharply. Tata Steel (down 5.73%), Jindal Steel & Power (down 5.66%), Steel Authority of India (down 4.86%), Vedanta (down 3.07%), Hindalco Industries (down 2.30%), Hindustan Copper (down 1.49%), National Aluminium Company (down 1.32%), NMDC (down 1.22%) and Hindustan Zinc (down 0.93%) edged lower.

PSU bank stocks fell. Allahabad Bank (down 3.24%), IDBI Bank (down 1.81%), State Bank of India (down 1.70%), Bank of Baroda (down 1.68%), Bank of Maharashtra (down 1.57%), United Bank of India (down 0.89%), Punjab & Sind Bank (down 0.78%) and Central Bank (down 0.44%) declined.

Overseas, European shares were trading higher on Monday. Asian shares were mixed. Investors were cautious ahead of a closely-watched Federal Reserve meeting, while political tensions in the Middle East and Hong Kong kept risk-appetite in check.

US stocks ended lower on Friday, 14 June 2019, as investors turned cautious before this week's Fed meeting, while a warning from Broadcom on slowing demand weighed on chipmakers and added to U.S.-China trade worries.

In economic data, industrial production rose 0.4% in May, a solid and broad-based gain helped by increased production of pickup trucks and cars, the Federal Reserve said Friday. It was the strongest monthly rise in six months.

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