Swine flu compounds problems for markets

Swine flu compounds problems for markets

Mumbai: Swine flu fears and worries about unfavourable rain in the country pulled down the benchmark Sensex by another 150 points on Monday, extending losses to the third straight day amid high volatility.

Fluctuating widely between 15,417.34 and 14,902.02, the BSE 30-share barometer settled the day at 15,009.77, netting a loss of 150.47 points or 0.99% from its previous close.

Foreign institutional investors reportedly were heavy sellers after the Maharashtra government ordered the closure of schools and colleges in Pune, where swine flu has claimed several lives so far.

The Meteorological department has said rainfall so far has been much below normal.

FIIs sold shares worth Rs1,050.81 crore in the cash market on 7 August, as per the provisional data.

A weak beginning in European markets this afternoon also weighed on investor sentiment.

Bonanza Portfolio assistant vice-president Avinash Gupta said: “Concerns on monsoon prevailed in the market. A volatile day ended with losses on the back of investors reducing their commitment. The market is poised at a critical juncture. It is expected to continue to consolidate, though a possibility of a further breakdown cannot be ruled out."