Nifty falls 1.56% amid sell-off

Bombay Stock Exchange.

Bombay Stock Exchange.   | Photo Credit: PAUL NORONHA


BSE slumps 447.60 points, biggest single-day loss in 2017

A combination of global and domestic factors dragged down benchmark equity indices on Friday with the Nifty closing below the psychological 10,000 mark.

Investors remained jittery after China’s credit rating was downgraded by S&P, the U.S. Federal Reserve hinted at one more interest rate increase in 2017 and geopolitical tensions increased between the U.S. and North Korea. These factors led to a global sell-off as leading Asian indices including Japan’s Nikkei, Hong Kong’s Hang Seng and Seoul’s Kospi. and the U.S. markets overnight, ended in the red.

In India, the 30-share Sensex lost 447.60 points, or 1.38%, to close at 31,922.44. The broader Nifty lost 157.50 points, or 1.56%, to close at 9,964.40. This was the biggest single-day loss for the indices in 2017.

“Indian markets corrected as both local and global news flows have been negative,” said Vaibhav Agrawal, head of research at Angel Broking. The factors dampening sentiment included the near certainty that the Fed would raise rates soon, China’s credit downgrade and rising tensions between the U.S. and North Korea coupled with the Indian finance minister’s statement on providing a stimulus package that might cost fiscal prudence, he said.

While realty, metal and banking stocks were the worst-hit, the biggest losers in the Sensex pack were Tata Steel, L&T, Reliance Industries, ICICI Bank, Hero Motor Company, State Bank of India and Adani Ports.

The mid-cap segment saw significant selling pressure as the overall market breadth was weak with more than 2,100 stocks losing ground as against only 484 gainers.

A section of market participants, however, remained optimistic and felt that the current falls could be looked upon as an attractive opportunity to enter the equity arena.

“History tells us that such events invite sharp reactions from equity markets and the pessimism is short-lived. Investors who have been waiting for correction should take the opportunity to add quality stocks to portfolio.” said Arun Thukral managing director and chief executive officer of Axis Securities.

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Printable version | Dec 14, 2019 9:16:34 PM |

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