Fortunes soured for stocks for the
seventh day in a row as the Sensex today plunged a sharp 440
points to close at an over three-month low, triggered by a
weakening rupee on concerns that foreign capital will move out
sooner than later after Fed Chair Janet Yellen's comments.
Yellen, in a speech, said the US Federal Reserve should
stick to gradual rate hikes despite the uncertainty about the
This was enough for foreign investors to hit the exit
button, looking for instruments that yield better returns. The
rupee took a hammering, sinking to over a six-month low of
65.75 against the dollar during the day.
The lingering Korean stand-off dealt a further blow after
US President Donald Trump dialled up his threats saying
America is "totally prepared" for a "military option" on North
Korea, warning that would be "devastating".
Updates of military action on the eastern border hastened
the market's fall, which has been on a slippery slope ahead of
the derivatives expiry tomorrow.
Clearly, it was downhill drive for the BSE benchmark
right in the beginning, which settled lower by 439.95 points,
or 1.39 per cent, at 31,159.81.
This is the weakest closing since June 30 when the gauge
had settled at 30,921.61. It had lost 824 points in the
previous six sessions.
Mood was downcast at the 50-share NSE Nifty too, which
after regaining the key 9,900-mark at one stage closed down
135.75 points, or 1.38 per cent, at 9,735.75 -- a level last
seen on August 11 when it closed at 9,710.80.
"Market extended losses while the rupee sank to a 6-month
low on continued outflow of foreign funds. Additionally,
slowdown in GST tax collection dented sentiment and investors
expected that the GST-led disruption is likely to extend and
will hurt earnings for the next few quarters," said Vinod
Nair, Head of Research, Geojit Financial Services Ltd.
Investors' wealth as measured by market capitalisation of
BSE listed companies took a big knock of Rs 1,79,524 crore,
which read Rs 1,30,55,056 crore.
From the Sensex bloc, Adani Ports barrelled down 4.85
per cent, followed by SBI 2.89 per cent. The overall losses
swelled because of weakness in heavyweight RIL, Dr Reddy's,
Sun Pharma and ICICI Bank.
TCS emerged as the big gainer, up 0.62 per cent, while
Coal India rose too.
Mid-cap and small-cap stocks moved in sync with the
benchmarks and dropped by up to 2.10 per cent.
Stocks of Divi's Lab crashed 11.60 per cent to Rs 850.15
after the company said it has received six new observations
from the US Food and Drug Administration (USFDA) after
inspection of its Visakhapatnam unit.
Selling was maximum in the BSE realty index, down 2.66
per cent. Healthcare, capital goods and power stocks also kept
As has been the case so far, foreign portfolio investors
(FPIs) stayed reluctant towards Indian shares, who net sold
shares worth Rs 1,915.54 crore. Domestic institutional
investors (DIIs) remained true to their form, picking up
shares worth a net Rs 1,537.10 crore yesterday, according to
Overseas, most Asian indices ended mixed. Participants
waited for key events, including the unveiling of Trump's tax
reforms and the release of Japanese economic data later in the
week. European shares moved higher.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)