Sensex closes 38 points down in volatile session; metal stocks crash

Mumbai (Maharashtra) [India], May 23 : The Indian stock markets key indices, Sensex and Nifty, closed in the red in a volatile session on Monday after the government announced a slew of fiscal measures on the weekend to ease inflationary pressure.
The 30 stock S&P BSE Sensex closed 37.78 points or 0.07 per cent down at 54,288.61 points against its previous session's close at 54,326.39 points.
The markets witnessed a volatile session. The Sensex started the day on a positive note at 54,459.95 points. Volatility was seen in the markets from the morning itself. The Sensex slipped into the red in the early morning session hitting a low of 54,191.55 points. However, it made a strong recovery surging to a high of 54,931.30 points in the intra-day. The markets witnessed selling pressure towards the end of the trading session and ended the day in the red.
The benchmark Sensex had gained 1534.16 points or 2.91 per cent on Friday, the previous trading day.
The broader Nifty 50 of the National Stock Exchange closed 51.45 points or 0.32 per cent down at 16,214.70 points against its previous session's close at 16,266.15 points.
The Nifty had gained 456.75 points or 2.89 per cent on Friday.
The markets witnessed volatile trading after the government announced a slew of measures on the weekend to ease inflationary pressure.
On Saturday, Finance Minister Nirmala Sitharaman announced a cut in excise duty on petrol by Rs 8 per litre and on diesel by Rs 6 a litre. The duty cut has significantly brought down retail prices of these fuels. Retail price of petrol has come down by Rs 9.5 per litre and diesel has become cheaper by Rs 7 a litre. The move would help ease inflation, which has been above the Reserve Bank of India's tolerance limit for the past several months.
Auto, FMCG and capital goods stocks rallied after the government's move to ease inflationary pressure.
Mahindra & Mahindra soared 4.14 per cent to Rs 942.05. Maruti Suzuki surged 4.07 per cent to Rs 7896.20. Hindustan Unilever climbed 2.35 per cent to Rs 2380.05. L&T soared 2.21 per cent to Rs 1645.65.
Asian Paints, Kotak Bank, Wipro, Tech Mahindra, Infosys, TCS and Nestle India were among the major Sensex gainers.
Metal stocks tumbled after the government imposed hefty duties on exports of steel-making raw materials like iron ore and pellets.
Tata Steel crashed to the lowest level in over a year. The scrip tumbled 12.24 per cent to Rs 1027. It crashed to a low of Rs 1003.15 in the intra-day.
Steel Authority of India crashed 10.30 per cent to Rs 74.45. The scrip hit a low of Rs 72.20 in the intra-day. This is the lowest level in 52 weeks.
Jindal Steel & Power slumped 17.52 per cent to Rs 395. The scrip crashed to a low of Rs 391.30. JSW Steel dipped 13.21 per cent to Rs 547.50.
Share price of NDMC, Vedanta and Hindalco Industries also tumbled.
Metal stocks crashed after the government announced the imposition of hefty taxes on raw materials used for steel manufacturing.
On Saturday, the government announced upto 50 per cent increase in export duty on iron ore. Duties have been significantly increased on pellets and some other steel intermediaries.
The government has increased the duties on exports of these materials to boost domestic availability and curb price rise.