Why Is the Stock Market In Red ? 3 Key Factors Behind Monday's Downtrend

The equity benchmark indices Sensex and Nifty declined on Monday amid heavy selling in Kotak Mahindra Bank, continued foreign fund outflows and weak trends in Asian markets.

The Indin stock market indices Sensex and Nifty were in red during Monday's trading session after heavy investor selling occured in Kotak Mahindra Bank, outflow of FII funds continued, and weak cues in Asian markets.

At  2:23 p.m.,BSE Sensex declined  0.67  per cent or 548.08 to 80,915.01, while the broader index Nifty 50 fell down 153.20 points or 0.62 per cent to 24,683.80.

The top lossers in trade on Monday were Kotak Mahindra Bank, Bharat Electronics, Bharti Airtel, Titan and Apollo Hospitals Enterprise, declining up to 7 percent intraday.

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Key Reason's Behind Monday’s Market Decline

Kotak Mahindra Bank drags: The stock price of Kotak Mahindra Bank declined nearly 7 percent after the private lender reported a consolidated net profit of Rs 4,472 crore for the June quarter. The bank flagged stress in its retail commercial vehicle portfolio due to unfavourable macroeconomic conditions.

The profit in the same quarter last year was Rs 7,448 crore, which had included a one-time gain of over Rs 3,000 crore from a stake sale in its general insurance arm. The bank was the top loser in the Nifty Bank index, which was down up to 0.4 percent with eight other similar equities trading in the red.

FII selling: Foreign Institutional Investors (FIIs) have offloaded equities totalling Rs 1,979.96 crore on Friday. The continued FII selling has increased pressure on domestic stocks.

Weak Asian market cues: The Asian markets on Monday's trading session were largely negative with South Korea’s Kospi, Japan’s Nikkei 225 and China’s Shanghai Composite Index trading in the red, weighing on investor sentiment back home.