Indian equity bourses saw a deep dive on Monday, with Sensex & Nifty losing around a percent each. The start of the day was on a positive note, aided with Union Road Transport and Highways Minister Nitin Gadkari's statement that the goal of making India a $5 trillion economy by 2024 was difficult but not impossible. He added that it can be achieved by increasing domestic production and reducing dependence on imports. But soon, markets turned negative, as former finance secretary Subhash Chandra Garg said that the government's tax collection is likely to fall short of its estimate by Rs 2.5 lakh crore or 1.2% of GDP in 2019-20. Key indices remained in negative terrain for almost whole trading session, amid a report stating that progress across major development schemes in India, including education, health and nutrition among others, remains constrained due to sub-optimal utilisation of available funds, especially at the district level. Adding more anxiety among investors, another private report stated that surging inflation and slowing growth are raising serious concerns about the future growth prospects of the economy and as a remedial measure the government should resolve supply side hurdles and ensure more stringent governance norms. Finally, the BSE Sensex lost 416.46 points or 0.99% to 41,528.91, while the CNX Nifty was down by 127.80 points or 1.03% to 12,224.55.

The US markets were closed on Monday on account of Martin Luther King, Jr. Day.  

Indian rupee ended marginally lower against US dollar on Monday, due to fresh demand for the American currency from banks and importers. Traders remained cautious with the former finance secretary Subhash Chandra Garg's statement that the government's tax collection is likely to fall short of its estimate by Rs 2.5 lakh crore or 1.2% of GDP in 2019-20, and called for scrapping of dividend distribution tax. The domestic currency was also weighed down the dollar's strengthen against some other currencies overseas along with sharp losses in the local equities. However, losses were limited as traders found some support with Union Road Transport and Highways Minister Nitin Gadkari's statement that the goal of making India a $5 trillion economy by 2024 was difficult but not impossible. He added that it can be achieved by increasing domestic production and reducing dependence on imports. On the global front, dollar held near a one-month high against major currencies on Monday after last week's run of data confirmed that the United States economy is holding up well. Finally, the rupee ended at 71.11, 3 paise weaker from its previous close of 71.08 on Friday.

The FIIs as per Monday's data were net sellers in both equity and debt segments. In equity segment, the gross buying was of Rs 4299.16 crore against gross selling of Rs 5719.80 crore, while in the debt segment, the gross purchase was of Rs 432.69 crore with gross sales of Rs 3547.90 crore. Besides in the hybrid segment, the gross buying was of Rs 6.55 crore against gross selling of Rs 6.85 crore.

The US markets were closed in Monday on account of Martin Luther King Jr. holiday. Asian markets are trading in red on Tuesday lacking any lead from Wall Street and with the Bank of Japan (BoJ) set to release its quarterly outlook report as well as its interest rate decision later in the day. Indian markets ended lower on Monday tracking an intense sell-off in index heavyweights Reliance Industries, Kotak Bank, HDFC Bank and TCS following their quarterly results. Today, the markets are likely to make pessimistic start tracking weakness in Asian peers amid economic growth concerns. There will be some concern as The International Monetary Fund trimmed back its 2020 global growth forecasts due to sharper-than-expected slowdowns in India and other emerging markets but said a US-China trade deal was another sign that trade and manufacturing activity may soon bottom out.  Besides, the government is likely to tweak stock market-related taxes such as dividend distribution tax (DDT) and long term capital gains tax (LTCG). Meanwhile, Finance Minister Nirmala Sitharaman has said the government's earnest attempt was to decriminalise everything that has to do with Companies Law or related acts as part of initiatives towards a $5 trillion economy. There will be some reaction in coal stocks with report that India's thermal coal imports fell for three straight months for the first time in over two years, as an economic slowdown stifled demand from industries such as cement and sponge iron. There will be some important earnings announcements too to keep the markets buzzing.

Support and Resistance: NSE (Nifty) and BSE (Sensex)

Nifty Top volumes

• Bharti Airtel has partnered with Future Group to add to the wide range of exciting exclusive benefits it offers to customers as part of its Airtel Thanks program. 
• IOC has entered into an agreement with Cummins Technologies for bulk dispensing of DEF in their advanced engines with SCR systems. 
• HCL Technologies is betting on strong demand across sectors, including manufacturing and retail, to continue its growth momentum in the coming quarters. 
• Reliance Industries has outpaced industry in clocking double digit sales growth in petrol and diesel from its nearly 1,400-odd petrol pumps in the third quarter ended December 31, 2019.