Marking an end to a day of strained trading session, the S&P BSE Sensex ended the day at 29,237.15, falling over 184 points while the NSE Nifty closed 9,045.20, down 62.80 points.
The market was in red following weak global cues after US President Donald Trump failed to push his healthcare bill through, raising eyebrows among investors who feared the possibility of Trump not being able to pass his tax reforms and public spending plans.
The benchmark indices closed in the negative after a volatile day of trade today.
The S&P BSE Sensex ended the day at 29,237.15, falling over 184 points while the NSE Nifty closed 9,045.20, down 62.80 points.
The top loser, dragging the BSE down ws Tata Steel, whose shares fell nearly 3.5 per cent in trade on Monday.
Shares of Reliance Industried Ltd took a beating, falling 3 per cent after Sebi accused co of having committed a "fraud" in taking a short trading position at the time of selling a stake in a unit in 2007. It has also ordered Reliance Industries to surrender most of gains, plus interest; bars it from trading in derivatives for one year.
Coal India fell over 2 per cent in trade and was among the top losers on the BSE after the state-owned miner announced its second interim dividend of Rs 1.15/ share for current financial year as the dividend amount declared slightly less than market expectations.
On the Nifty index, Idea Cellular was the top loser shedding over 3 per cent in today's trade.
Hindalco and Tata Steel also dropped over 3 per cent in trade.
Government keen to roll out GST by July 1.
Finance Minister Arun Jaitley tables GST related bills in Lok Sabha, however, Congress opposes the tabling of the bills.
Goods and Services Tax
The government is most likely to table the supplementary GST legislations in Parliament on Monday.
C-GST, I-GST, UT-GST and the compensation law are likely to be introduced in the Lok Sabha and could be taken up for discussion as early as March 28.
Also, amendments to the excise and Customs Act to abolish various cess as well as furnishing Bills for exports and imports under the new GST regime will be placed before the House.
The S&P BSE Sensex was trading at 29,209.21, nosedives 212.19 points, while the Nifty Index was trading at 9,039.65, down 68.35 points.
Tata Steel was the major loser, falling nearly 3 per cent on the BSE.
The Indian benchmark indices dipped in opening trade with the BSE Sensex plunging nearly 100 points, contrary to its pre opening session numbers.
The S&P BSE Sensex was trading at 29,343.48, down 77.92 points, while the Nifty Index was trading at 9,081.65, down 26.35 points.
On the BSE, Coal India was the major loser, falling nearly 2 per cent followed by Reliance.
PRE OPENING SESSION
The BSE Sensex looks promising with 89 points in th green. The Nifty Index, however, is 14 points down.
"After gaining significant strength against dollar, rupee is consolidating but bias is still in positive side. Good FIIs flows in both Indian Equity and Debt market is boosting sentiment in currency market whereas weakness in Dollar index and Crude oil is another trigger for strength of rupee. Dollar index may continue to remain under pressure as it has surrendered sacrosanct mark of 100 and continuously trading below this. USDINR pair is likely to remain in 65.25-65.5 range with positive bias," Said Amit Gupta, co-founder and CEO, TradingBells.
At 9.00 AM, the Shanghai Composite was trading 4 points higher, while the Hang Seng Index was 43 points in the red. Japan's Nikkei took a beating and was over 1 per cent down, plunging 291 points.
US equity futures slump after Trump's healthcare bill issue which could mean that Wall Street would start the week on the lower side.
The Republicans pulled the healthcare legislation to examin the US healthcare system which is a setback for the US president Donald Trump.
The S&P 500 e-mini futures were down over 0.65 per cent after electronic trading resumed on Sunday.
Markets were unnerved last week by Trump's inability to get enough support for legislation to reform the US healthcare system, a major 2016 election campaign promise of the president and his allies.
Investors had worried that the difficulties with the health bill could delay other legislation such as tax reform. Trump said he would now turn his attention to getting "big tax cuts" through Congress.
Speaking on "Fox News Sunday," White House chief of staff Reince Priebus said the administration was open to working with moderate Democrats and Republicans to pass other aspects of Trump's agenda, such as revamping the tax code.
David Ader, chief macro strategist at Informa Financial Intelligence, said about the failed health care bill: "The friction in Washington over all this is tempting to extrapolate to Trump's broader economic plans - lower taxes, fiscal stimulus - in that these, too, may stumble or at least retreat from the levels initially offered."
News that Republican leaders pulled the bill broke just before the markets closed on Friday, sending stocks lower.
For the week, the S&P 500 fell 1.4 percent, its worst weekly decline of the year.
The equity run-up since Trump's election, which was largely based on expectations of tax cuts and deregulation of financials, appeared to be waning, said Putri Pascualy, managing director and partner at Pacific Alternative Asset Management Company, which has $24 billion in assets under management.
"Recent market pullback tells me that some of the euphoria is starting to ebb as reality sinks in," Pascualy said. "Congress can throw a big wrench into how some of these plans are going to be executed."
Mark Grant, chief strategist and managing director at Hilltop Securities, recommended investors move into 5-10 year corporate bonds "because I don't see stocks posting double-digit returns after their huge run-up since the elections."
(With inputs from Reuters)