On Monday, this would be not wrong to say that the confidence of investor was on the knife-edge. The reason behind this was that domestic stocks rolled down. In the afternoon session, at the certain stage, the Sensex was down as much as 400 points at 33,610. To justify this condition following are some of the significant factors that were responsible for it. Let us see the following factors that left the bulls mauled on Monday.
Punjab National Bank mess
Recently, sentiment took a big jolt when Punjab National Bank announced that it had discovered fraudulent transactions of Rs 11,400 crore. This is so far one of the biggest fraud that took place in one of its Mumbai branches. This case involves businessman Nirav Modi and his uncle Mehul Choksi. It was observed that the stock tanked almost 20 percent last week. The stock also crashed another 8 percent to Rs 115.50 on the BSE on Monday.
Pity condition of PSU banks
The impact of the PNB fraud could be seen elsewhere, too. Various other state-owned banks took a battering as it came to light that a few of them had financial exposure to the banking scam. The Shares of UCO Bank fell 11.3 percent to Rs 25.20. The Allahabad Bank fell 6.75 percent to Rs 51.05. As per the report, Allahabad Bank stated that they have an exposure of around Rs 2,000 crore. In the fraud that was detected by PNB recently.
Oil Price raised again
It was observed that the oil prices rose further. To hit its highest level in nearly two weeks on Monday. As Asian shares joined a global recovery, there was relief in a weaker dollar. But the worries grew over tensions in the Middle East.
Tech charts signal further weakness
On Monday, it was observed that the Nifty50 counterbalance the highs those were formed in the previous three sessions. It ended up forming a bearish candle on the daily chart. In the upcoming weeks, the index stares at further weakness. The technical analysts have given a warning that any fall below the 10,480 level might intensify selling in Nifty50.
FPIs in exit mode
On the Indian stock market, foreign investors have turned bearish. It is revealed that FPIs have pulled out a staggering $1 billion, or Rs 6,850 crore from the Indian stock market.